1 2016–2017 Annual Report www.dpc.wa.gov.au 2 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
Produced and published by The Department of the Premier and Cabinet Principal address: Dumas House 2 Havelock Street West Perth WA 6005 Postal address: Locked Bag 3001 West Perth WA 6872 Telephone: (08) 6552 5000 Fax: (08) 6552 5001 Email: [email protected] ISSN (Print): 1448-7306 ISSN (Online): 1448-7314 SECTION TITLE SECTION HEADING 3
Contents »» Statement of Compliance 4 »» About this Report 5 »» Director General’s Overview 6
About the Department 8 »» Our Structure 9 »» Senior Officers 10 »» Key Service Areas 14 »» Strategic Plan 2013-17 14 »» Performance Management Framework 15 »» Administered Legislation 16
Agency Performance 18 »» Strategic Goal 1: Leadership 19 »» Strategic Goal 2: Organisational Capability 25 »» Strategic Goal 3: Implementation 27 »» Strategic Goal 4: Advice and Support 36
Significant Issues Impacting the Department 42 »» Explanation of Significant Variances 43
Disclosures and Legal Compliance 44 »» Independent Auditor’s Report 45 »» Certification of Financial Statements 48 »» Notes to the Financial Statements 57 »» Certification of Key Performance Indicators 95 »» Performance Snapshot for 2016–17 96 »» Audited Key Performance Indicator Information 98 »» Other Financial Disclosures 103 »» Board and Committee Remuneration 104
Other Legal Requirements 106
Government Policy Requirements 110 4 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
Department of the Premier and Cabinet Statement of Compliance for the year ended 30 June 2017
Hon M McGowan BA LLB MLA Premier; Minister for Public Sector Management; State Development, Jobs and Trade; Federal-State Relations In accordance with section 63 of the Financial Management Act 2006, I hereby submit for your information and presentation to the Parliament, the Annual Report for the Department of the Premier and Cabinet for the financial year ended 30 June 2017. The Annual Report has been prepared in accordance with the provisions of the Financial Management Act 2006.
Darren Foster Director General SECTION TITLE SECTION HEADING 5
About this Report This report analyses our performance with regard to the services that the Department of the Premier and Cabinet provided during 2016-17. In that period these services included support to the Premier as head of the Western Australian Government and Minister for Federal-State Relations and Public Sector Management. The Department also provided quality policy and administrative advice and support to enable the Premier and Government to serve the Western Australian community. Until 30 June 2017, the Department supported the Office of Science and the Minister for Science, the Hon Dave Kelly MLA. Our annual report has been structured around the following: »»Overview of 2016–17 »»About the Department »»Agency Performance »»Significant Issues »»Disclosures and Legal Compliance »»Other Legal Requirements »»Government Policy Requirements This report has been prepared in accordance with the Public Sector Commission’s Western Australian Public Sector Annual Reporting Framework for 2016–17. 6 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017 Director General’s Overview The year in review has been marked by transformation and renewal as the Department of the Premier and Cabinet transitions to serving a new Government. As a central agency, it has been vitally important the Department provides leadership throughout this period of change by continuing to deliver high level support to the Government of the day while supporting our staff and community as a whole.
This annual report demonstrates Parallel to this work, the Department The Department has also progressed the Department’s vast breadth this year delivered high level policy conservation management in Western of duties, highlighting a range of advice on a number of issues including Australia towards co-management achievements throughout 2016–17. state security, infrastructure funding, with Traditional Owners. A significant GST matters and job creation. achievement included the negotiation of Supporting the Government nine Indigenous Land Use Agreements with A particular focus has been on working in Since the March election of the McGowan Native Title holders to enable the creation partnership with community services to Government, the Department has supported of over 30,000 square kilometres of new achieve better results for Western Australians the Premier as Minister for Public Sector Kimberley marine and terrestrial parks. Management by facilitating several key in key areas such as disability services, public-sector reforms including Machinery Aboriginal affairs, justice, youth, child Providing procedural and operational services of Government changes to improve service protection and community safety. Notably, to the Cabinet including supporting the delivery, efficiency and affordability of the the Department oversaw comparative management of parliamentary business and sector. Other public sector renewal measures trials of the National Disability Insurance the legislative program of the Government supported by the Department include a Scheme in WA for the third year. are also part of the Department’s duties. In the past year, support was provided Service Priority Review which is examining and The Department also continued to lead the for 40 Cabinet meetings including a reporting on the functions, operations and consultation on the Strategic Assessment regional Cabinet meeting in Moora and culture of the public sector and an Inquiry into of the Perth and Peel Regions which is community cabinet in Midland. Government Programs and Projects which considering the urban, industrial, rural will report on the governance arrangements, residential and infrastructure needs and With the change in Government, the decision-making process and financial impacts on the region as we plan for Ministerial Support Unit coordinated a consequences of 26 programs and projects. future population growth. Revisions to smooth transition in Ministerial Offices The reforms are the largest in more than two the assessment are underway and further and the State Ceremonial and Events decades and the Department will continue to consultation is planned for the year ahead. team ensured the official opening of the encourage a culture of collaboration between fortieth Parliament, held in May, was marked agencies to deliver a positive outcome for the by a ceremony steeped in tradition. State in challenging financial circumstances. DIRECTOR GENERAL’S OVERVIEW 7
Supporting the Community On a solemn note, the Department worked Supporting our People The Department’s work to strengthen closely with key groups to assist in the As a central agency, it is important connections with the community and support remediation and recovery efforts following the Department sets the example in trade, industry, education and the arts spans the devastating bushfires in Yarloop providing opportunities for professional local, national and international jurisdictions. and surrounding areas in the Shires of development, supporting the health and Harvey and Waroona in January 2016. well-being of employees and in encouraging Commemorating the 400th anniversary diversity amongst our workforce. of the Landing of Dirk Hartog at Cape Nationally, the Department played an Inscription in October 2016 was a particular important role in negotiations with As we work towards a new year, the highlight of the year, capturing the public’s the Commonwealth and State public vision of this Department is to cultivate imagination with thousands attending a five- sector agencies for the provision of an inclusive, collaborative culture across day festival in Denham. Thorough planning a wide range of state-type services the public sector. Working together with ensured the success of the occasion, which to the citizens of Christmas Island other departments to meet the needs of culminated with a two-day State visit of and the Cocos (Keeling) Islands. the Government and the people of our Their Majesties King Willem-Alexander The Department’s three international offices State sits at the core of our functions. and Queen Maxima of the Netherlands. also continued their work in encouraging On a personal note, this year’s Annual Report Another significant international visit this commercial, investment, educational and marks my first as Director General of the year was from His Excellency Mr Toshizo cultural ties to enhance the State’s reputation. Department of the Premier and Cabinet and Ido, the Governor of Hyogo Prefecture, Supporting Science I would like to take this opportunity to thank Japan who visited Perth to mark the 35th everyone in the Department for their support. The Office of Science continued to lead anniversary of the Sister State relationship I would also like to acknowledge the service Western Australia’s involvement in the between WA and the Hyogo prefecture. and contributions made by former Director Square Kilometre Array radio astronomy General Peter Conran, former Acting Director The Constitutional Centre continued to project as well as contribute to the planning General David Smith and Deputy Directors provide educational programs to primary and delivery of key awards and grants General Richard May and Lyn Genoni this year. and secondary students across the State and working with organisations such as including hosting 240 enthusiastic Year the WA Marine Science Institution, the I look forward to the year ahead as 11 students who immersed themselves WA Biodiversity Science Institute and the the Department works to support in debate and discussion at two Schools ChemCentre to deliver science priorities. the Government in delivering positive Constitutional Conventions. Fifteen of outcomes for the State. Achievements this year included the these students went on to represent WA at launch of the Premier’s Fellowship the 2017 National Schools Constitutional Program and the Premier’s Agriculture and Convention held in Canberra in March. Aquaculture Entrepreneurship Program.
Darren Foster Director General 8 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017 01 About the Department ABOUT THE DEPARTMENT OUR STRUCTURE 9 Our Structure Responsible Minister Office of State Security and Director General The Department reports to the Hon M Emergency Coordination Mr Darren Foster McGowan BA LLB MLA, in his capacity as Premier; Minister for Public Sector Management; Federal-State Relations.
Infrastructure and Chief Executive Officer Policy and Reform State Services Strategic Projects Mr Darren Foster is the Chief Executive Deputy Director General Executive Director A/Deputy Director General Officer of the Department appointed Vacant Mr Robert Kennedy Mr Malcolm Bradshaw under section 45 of the Public Sector Management Act 1994 and is also the Accountable Authority, as prescribed in section 52 of the Infrastructure Delivery Aboriginal Policy Cabinet Services Financial Management Act 2006. Authority for the Establishment of the Agency Economic and Infrastructure Policy Governance and Reporting The Department was established Environmental Policy in 2001 under the Public Sector Management Act 1994. Strategic Environmental Federal-State Relations Executive Services Planning and Approvals
Land, Approvals and Social Policy Communications Native Title
Public Sector Reform Corporate Services
The Department of the Premier and Cabinet’s interim organisational Chief Financial Officer structure was announced on 12 September 2017. 10 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017 Senior Officers
Director General A/Deputy Director General Assistant Director General Mr Darren Foster Mr Malcolm Bradshaw – State Administration and Corporate Support Mr Foster joined the Department in Mr Bradshaw has over 27 years of Ms Kathryn Andrews March 2017 and was appointed as public sector experience in a number Director General in July 2017. Mr Foster of agencies, including senior roles in Ms Andrews was appointed as the has over 30 years of public sector the Departments of the Premier and Assistant Director General State experience as a senior policy and Cabinet, Treasury, Housing and Works Administration and Corporate Support strategy adviser in Commonwealth, and the Legal Aid Commission. Mr in May 2016. She has over 30 years State and local governments, in areas Bradshaw also worked for two years of public sector experience and has as diverse as Environment, Treasury in an executive role with the owner worked in a number of Departments and Finance; Energy; Health; Education of Perth Airport. Much of his work in in the corporate support area. She was and Training; Tourism; Racing and the public sector has been concerned recruited to the Western Australian Gaming and Native Title. Mr Foster has with the planning, financing and public service through the Graduate held senior roles in the Department delivery of major infrastructure assets. Program and has a Bachelor of of Fisheries and the Office of the Mr Bradshaw is admitted as a Legal Commerce degree. Ms Andrews was Environmental Protection Authority, Practitioner in Western Australia and initially appointed to the Department and the National Native Title Tribunal. the Australian Capital Territory, and of the Premier and Cabinet in January Mr Foster holds a Bachelor of Arts holds undergraduate and postgraduate 1994 in the Human Resource Services (Communication and Cultural Studies) qualifications in Arts, Law and Business Branch (HRSB) and has occupied and a Postgraduate Diploma of Arts from UWA, ANU and UNSW (AGSM). the positions of Manager, HRSB and (History), and is an alumnus of the Director, State Administration. She is Australian and New Zealand School of also a Clerk of Executive Council. Government Executive Fellows Program. ABOUT THE DEPARTMENT SENIOR OFFICERS 11
Assistant Director General – Executive Director – Whole of A/Executive Director – Community A/Executive Director – Office of State Security and Government, Future Directions and Human Services Economic and Deregulation Emergency Coordination and Strategic Projects Ms Jenni Perkins Mr Rosh Ireland Mr Geoff Hay Mr Robert Kennedy Ms Perkins joined the Department of Mr Ireland has been Acting Mr Hay was appointed to this position Mr Kennedy has worked in public the Premier and Cabinet as Acting Executive Director, Economic and in July 2005, following periods in sector agencies for over 20 years in Executive Director, Community Deregulation, since 6 December the positions of Assistant Director both the State and Commonwealth and Human Services in June 2016. 2016, and has been a Director in the General, State Administration, and Governments. Most of this time She brings to her role over 30 years’ Cabinet and Policy Division since Assistant Director General, Public has been in central agencies in experience in social policy and 2003. Mr Ireland has experience Sector Management. Mr Hay previously policy and administration roles. He community development which has across the Western Australian, held the position of Assistant Under joined the Department in 2003 included the not-for-profit sector Queensland and Commonwealth Treasurer at the Department of and was appointed Director, State and local and state government. Governments, providing strategic Treasury. Mr Hay has over 30 years of Administration, in 2008, when he joined With a degree in social work and a advice and leadership across many experience in the public sector and, the Corporate Executive. Mr Kennedy Masters in Public Policy, Ms Perkins policy areas including approvals, in addition to the Department of was appointed Executive Director has held senior executive positions infrastructure, natural resources, Treasury, he has been employed by the in 2016 and is responsible for the in the State Government for the energy and the environment. Department of Corrective Services Department’s corporate governance past 16 years, and has lead major and the Fremantle Port Authority. functions and Strategic Projects. reform agendas across the disability and community services sectors. 12 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
Executive Director – Director – Cabinet Secretariat Executive Director – Land, Director – Finance and Office of Science Mr Nick Hagley Approvals and Native Title Unit Information Services Ms Fiona Roche Mr Adrian Murphy Mr Gary Meyers Mr Hagley commenced as a Senior Ms Roche commenced as Executive Parliamentary Officer in 1989, before Mr Murphy has over 20 years of Mr Meyers has over 25 years of Director within the Office of Science moving to the Office of the former experience in the resource sector, experience in the State public in August 2015. She has a long history Minister for Police as Executive Indigenous affairs and land approvals. service. Prior to commencing at the of working in the government sector, Officer in 1995. Returning to the He has worked for Commonwealth Department in January 2016, Mr particularly in central agencies with a Department of the Premier and and State government agencies, as Meyers was the Director of Finance policy coordination role. She has worked Cabinet, he was appointed Manager of well as in the non-government and and Business Support, and Chief in senior roles in the Department the Parliamentary Services Branch and private sectors. His experience has Finance Officer at the Disability of the Premier and Cabinet, and has also acted as Cabinet Secretary. primarily been in the areas of strategic Services Commission (DSC). He was her recent background has involved In 2010, he was appointed Director of policy and systems development, and a key member of DSC’s reform team a focus on governance, integrity the Cabinet Secretariat and also Clerk major project negotiations. Mr Murphy established to implement, manage and and diversity. Ms Roche previously of Executive Council in May 2011. joined the Department of Mines and report on the State’s service delivery occupied the role of the Deputy Petroleum in 2009, transferring to model (MyWay) as part of the National Commissioner, Integrity Promotion the Department of the Premier and Disability Insurance Scheme trial within the Public Sector Commission. Cabinet at the beginning of 2011. being undertaken in Western Australia. Mr Meyers has also worked at the Department of Treasury and WorkCover, and is a Certified Practicing Accountant. ABOUT THE DEPARTMENT SENIOR OFFICERS 13
Senior Officers leaving the Department in 2016–17 The following Senior Officers left the Department in 2016–17: Mr Peter Conran AM Director General 2008-2016 Mr Conran retired in August 2016 Mr David Smith Acting Director General August 2016 – May 2017 Deputy Director General – Economic and Deregulation 2008-2016 Mr Smith became Acting Director General, Department of Mines, Industry Regulation and Safety in May 2017 Ms Lyn Genoni Acting Deputy Director General – Economic and Deregulation August 2016 – March 2017 Executive Director – Economic and Deregulation 2010-2016 Ms Genoni was seconded to the Department of the Attorney- General (now Department of Justice) from March 2017 Mr Richard May Deputy Director General – Community and Human Services 2015-2017 Mr May went on leave from March 2017 Mr John Strijk Director – State Law Publisher 1996-2016 Mr Strijk retired in February 2017 The McGowan Ministry, Parliamentary Secretaries, Parliamentary Secretary of the Cabinet and Her Excellency the Secretary of the Cabinet and Her Excellency Parliamentary Secretaries, Parliamentary Ministry, The McGowan House. at Government in Ceremony after the Swearing Australia, of Western Governor AC, Sanderson Kerry Honourable 14 StrategicDEPARTMENT OF THE PREMIER Plan AND CABINET2013-17ANNUAL REPORT 2016–2017
Our Vision Our Values »»Leading and supporting our people through Improving outcomes through leadership, The Department is committed to the Public providing development opportunities collaboration and innovation. Sector Code of Ethics and will be guided by and an engaging work environment its Code of Conduct and the following values: to produce the best services and Our Purpose leaders for today and the future. We provide quality policy and administrative »»Working with integrity »»Providing implementation support through advice and support to enable the »»Focussed on results coordinating, monitoring and partnering. Premier and Government to serve the »»Collaborating with others »»Providing quality and timely policy advice Western Australian community well. »»Leading improvement to support the Premier and Cabinet. »»Delivering quality and timely services to Our People Our Goals support the administration of Government. Our people are central to what »»Providing leadership in all facets of policy we do. We recognise and support development, from the progression of key their valuable contribution. sector reforms to developing innovative solutions to complex policy issues.
Key Service Areas
Government Goal: Results- These outcomes directly relate to the purpose »»administrative policy advice and Based Service Delivery and goals set out in the Department’s support to Ministerial offices and »»Greater focus on achieving results Strategic Plan 2013-17, and the service the Leader of the Opposition; in key service delivery areas for the structure to deliver these outcomes has »»promotion of Western Australia’s benefit of all Western Australians. been designed around the administrative interests overseas; and policy functions of the Department. »»communication of Government The Department’s activities also policies and activities; Services contribute to the Government Goals: »»support for the Executive Council; »»Administration of Executive »»Financial and Economic Responsibility »»administration of entitlements for Members Government Services »»Social and Environmental Responsibility and former Members of Parliament; »»Government Policy Management »»State Building – Major Projects »»management of the State occasions The key effectiveness and efficiency and official visits program; Agency-level Outcomes indicators report on the agency-level »»a secure, confidential and time-critical »»Executive Government receives outcomes achieved by these services. printing and publishing service for appropriate support. Parliament and Government; and Service 1: Administration of »»The Premier and Ministers receive high »»management of exhibitions and Executive Government Services quality, rigorous and timely policy advice. programs at the Constitutional Centre. »»administrative support to the Premier; ABOUT THE DEPARTMENT PERFORMANCE MANAGEMENT FRAMEWORK 15
Service 2: Government Policy Management »»strategic policy advice and coordination Performance Management Framework to the Premier and Cabinet; »»strategic policy advice and The Department operated under the delivered and the resources used to produce coordination to the Minister for guidance of its strategic vision, purpose the service. Collectively, the achievement of Science (until 30 June 2017); and goals, which set the direction the outcomes and services will demonstrate »»leadership and coordination of cross- necessary to achieving the Government how the Department contributes to agency solutions to complex issues; Goal of Results-Based Service Delivery. achieving the Government Goal. »»managing and coordinating Western Key performance indicators (KPIs) allow Further detail relating to the audited KPI Australian Government input into the Department to assess and monitor information is located on page 94. Results intergovernmental negotiations and performance in areas identified as critical to in this section show a comparison of key advice on Government positions on our business. These KPIs are used to measure efficiency and key effectiveness targets and federal reform, treaties, defence and the Department’s performance both on outcomes, forming part of the Department’s other matters raised through the Council a quarterly and annual basis, ensuring the Outcome Based Management structure. of Australian Governments and the delivery and achievement of the relevant Changes to the Outcome Based Council for the Australian Federation; services, outcomes, and Government »»strategic, cross portfolio advice on Goal as outlined in the table below. Management Structure land, State and Commonwealth The Department’s Outcome Based approvals and Indigenous issues; Outcome Based Management Structure Management Framework was revised »»support for the functions of Relationship to Government Goal for the year 2016-17, which resulted Cabinet and Parliament; and The following table demonstrates the in the Department reporting four »»emergency management policy advice to relationship between the Department’s additional efficiency indicators. the Premier, Ministers and Government services and desired outcomes, and the Shared Responsibilities agencies, and whole-of-government high-level Government Goal of Results-Based management and coordination of significant Service Delivery. Key effectiveness indicators with Other Agencies security incidents and emergencies. measure the extent of impact of the delivery The Department did not deliver services jointly of services on the achievement of desired with other agencies in 2016–17, however the outcomes, and key efficiency indicators Department continues to work with many monitor the relationship between the service agencies to achieve Government outcomes.
Government Goal Desired Outcomes Services Results-Based Executive Government Administration of Executive Service Delivery: receives appropriate support Government Services Greater focus on achieving The Premier and Ministers Government Policy results in key service delivery receive high quality, rigorous Management areas for the benefit of and timely policy advice all Western Australians 16 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017 Administered Legislation The following is a list of the Acts of Parliament which are the responsibility of the Premier and are administered by the Department.
Alteration of Statutory Designations Act 1974 Standard Time Act 2005 Armorial Bearings Protection Act 1979 State Flag Act 2006 Constitution Act 1889 Succession to the Crown Act 2015 Constitution Acts Amendment Act 1899 Taxation (Staff Arrangements) Act 1969 Daylight Saving Act 2006 Terrorism (Commonwealth Powers) Act 2002 Deputy Governor’s Powers Act 1911 Trans-Tasman Mutual Recognition (Western Australia) Act 2007 Discharged Servicemen's Badges Act 1967 Western Australia Day (Renaming) Act 2012 Election of Senators Act 1903 Other key legislation impacting on the Department’s activities Indian Ocean Territories (Administration of Laws) Act 1992 Machinery of Government (Miscellaneous Amendments) Act 2006 Corruption, Crime and Misconduct Act 2003 Members of Parliament (Financial Interests) Act 1992 Disability Services Act 1993 Ministers’ Titles Act 1925 Equal Opportunity Act 1984 Mutual Recognition (Western Australia) Act 2010 Electoral Act 1907 Noongar (Koorah, Nitja, Boordahwan) (Past, Present, Future) Recognition Act 2016 Financial Management Act 2006 Parliamentary and Electorate Staff (Employment) Act 1992 Freedom of Information Act 1992 Parliamentary Papers Act 1891 Industrial Relations Act 1979 Parliamentary Privileges Act 1891 Minimum Conditions of Employment Act 1993 Public Sector Management Act 1994 Occupational Safety and Health Act 1984 (Part 4 only; remainder of Act administered by the Premier Parliamentary Commissioner Act 1971 principally assisted by the Public Sector Commission) Public and Bank Holidays Act 1972 Returned Servicemen's Badges Act 1953 Public Interest Disclosure Act 2003 Royal Commission (Custody of Records) Act 1992 Public Sector Management Act 1994 Royal Commission into Commercial Activities of Government Act 1992 Salaries and Allowances Act 1975 Royal Commissions Act 1968 State Records Act 2000 Royal Powers Act 1953 State Supply Commission Act 1991 Royal Style and Titles Act 1947 Workers Compensation and Injury Management Act 1981 SECTIONAGENCY PERFORMANCE TITLE SECTION HEADING 17 The Premier, the Hon Mark McGowan MLA, being sworn in by Her Excellency Her Excellency in by MLA, being sworn the Hon Mark McGowan The Premier, House Ballroom. Government Australia, of Western Governor AC, Sanderson Kerry the Honourable 18 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017 02 Agency Performance Fish Hook Bay, Rottnest Island. Rottnest Fish Hook Bay, AGENCY PERFORMANCE STRATEGIC GOAL 1: LEADERSHIP 19 Strategic Goal 1: Leadership Providing leadership in all facets of policy development, from the progression of key sector-reforms to developing innovative solutions to complex policy issues.
The Department provides policy focuses on a strength-based approach in the supply of goods and services to advice and support on key priorities for to support Indigenous advancement. government, with a particular focus on Government and Ministers with respect benefits to small and medium enterprises. The Department supports the Premier in his to the economy, industry, infrastructure, membership on the Council of Australian The Department provides support to the planning and the environment. The reform Governments (COAG), which includes Premier on a range of major infrastructure of community and human services across the Prime Minister, state and territory matters, particularly infrastructure funding the Western Australian public service is First Ministers and the President of the matters involving the Commonwealth. In also an important focus, particularly in Australian Local Government Association 2016–17, this included representations partnership with the not-for-profit sector. and focuses on improving the current regarding the GST, successfully seeking Promoting the State’s Interests and future well-being of all Australians. additional infrastructure funding as a GST “top up”, and agreeing on variations to at the national level Driving economic policy reform The Department provides support the National Partnership Agreement on The Department provides policy support Infrastructure Projects in Western Australia. and leadership to the Premier, Cabinet for the Jobs and Economic Diversification and the Department’s senior officers Cabinet Sub-Committee, including for the The coordination of State interaction with in constructive engagement with the implementation of election commitments Infrastructure Australia, including updating Commonwealth, advocating whole-of- under the Government’s Plan for Jobs. A the national Infrastructure Priority List is government perspectives to advance the series of consortia have been held for the a priority and the Department is leading State’s interests. A key focus in 2016–17 Premier, Ministers and Directors General to discussions with the Department of the was promoting fundamental reform of engage with a range of key industry growth Prime Minister and Cabinet regarding the GST distribution arrangements. sectors including tourism, defence industries, the new ‘City Deals’ initiative under the The Department coordinates engagements agribusiness and international education. Commonwealth’s Smart Cities Plan. The Department is developing proposals to with the Commonwealth on significant The Department is leading the drafting economic and social reforms to ensure implement the Government’s commitment of the Western Australian Jobs Bill 2017, to establish Infrastructure Western improved outcomes for all Australians. In which is an election commitment in the 2016–17, this included negotiations on Australia, develop a State Infrastructure Government’s Plan for Jobs. This is aimed Strategy, and introduce a mechanism the Commonwealth’s Quality Schools at improving local industry participation reform package and support for a refresh for dealing with unsolicited proposals. of the Closing the Gap agenda that 20 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
The Department supports the Premier as There was also a significant supporting role The new parks are now being actively the State’s representative to the Northern in the development of land tenure reform managed by the relevant Joint Management Australia Strategic Partnership, represented proposals that were a priority of the former Bodies, comprising Traditional Owners the State on the Northern Australia Senior Government. The agency also made a series and officers from the Department of Officers Group and assisted the Department of representations to the Commonwealth Biodiversity, Conservation and Attractions. of Treasury with policy development regarding Government regarding regulation and The ILUAs allow for both direct and fee for the Northern Australia Infrastructure Facility. administration of land based carbon projects service employment for Aboriginal rangers to supported under the Emissions Reductions The Department continues to contribute work in the new marine and national parks. Fund, particularly in relation to safety to regulatory reform initiatives and reducing These positions are additional to traditional concerns with savannah burning projects. red tape. After a bilateral agreement owners that have been engaged through accrediting State assessments under the Investing in the State’s natural the Strategy’s Landscape Conservation Commonwealth Environment Protection and cultural heritage Initiative to manage fire, feral animals and and Biodiversity Conservation Act 1999 The Kimberley Science and Conservation weeds across the Kimberley landscape. was signed in 2014, the Department led Strategy (the Strategy) is a multi-agency The Strategy is also delivering significant new considerable work to negotiate an agreement program across seven government scientific information through the completion for accrediting State approvals, however agencies led by the Department of 25 projects under the Kimberley Marine the Commonwealth was unable to pass of the Premier and Cabinet. Research Program. This program, supported legislative amendments that were needed for by a $12 million investment by the State an approvals agreement to take effect. The Through the Strategy the Department has Government and delivered by the Western Department managed WA input and voting progressed conservation management in Australian Marine Science Institution, has on amendments to national competition Western Australia towards co-management involved researchers from across Australia law, which aimed to minimise new risks for with Traditional Owners. Amendments to and successfully combined western science Government entities that operate in markets. legislation now allow for joint management of conservation estates with native title holders, with traditional ecological knowledge to The Department supported the Departments as well as joint vesting of land based parks. inform joint management of the Kimberley of Treasury and Finance in the development marine park network and decisions of the Intergovernmental Agreement on Nine Indigenous Land Use Agreements impacting marine ecosystems and wildlife. Competition and Productivity-Enhancing (ILUAs) have been negotiated with Native Reforms to assist in the implementation of Title holders to enable the creation of over the Competition Policy Review (the Harper 30,000 square kilometres of new Kimberley Review). The Agreement was signed by the marine parks, including at Eighty Mile Beach, former Premier, the Hon Colin Barnett MLA, in Roebuck Bay, Horizontal Falls, Camden Sound, December 2016. The Department continues and North Kimberley, along with a number to work with the Departments of Treasury of terrestrial parks. The marine parks include and Finance in the development of a National 5,600 square kilometres of sanctuary zones. Partnership Agreement for regulatory reform and regulatory reform proposals which will attract Commonwealth reward payments. AGENCY PERFORMANCE STRATEGIC GOAL 1: LEADERSHIP 21
Supporting the future growth of our State The Department leads the Strategic Assessment of the Perth and Peel Regions (Strategic Assessment), in collaboration with the Departments of Planning, Lands and Heritage; Biodiversity, Conservation and Attractions; Mines, Industry Regulation and Safety; and Water and Environmental Regulation. It is a cross government exercise aimed at delivering integrated land use, transport and conservation planning for the growth of the Perth and Peel regions to 3.5 million people. The Strategic Assessment will secure upfront approval under the Commonwealth Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) for development required to support the growth of the Perth and Peel regions to a population of 3.5 million people, including urban, industrial, rural residential, basic raw materials and infrastructure development and EPBC Act approval for the harvesting of the pine plantations. The Strategic Assessment is also intended to streamline related State environmental approvals processes under the Environmental Protection Act 1986. The draft Strategic Assessment documents were released for five months of public consultation in December 2015. 600 individual submissions were received along with 3000 pro-forma submissions. These submissions have been analysed through a cross agency process and work on the revisions of Strategic Assessment documentation is underway.
Top left: Indigenous Rangers and Biodiversity, Conservation and Attractions staff in the Kimberley. Top Right: Carnaby’s Black Cockatoo. Middle: State International Education Consortium. Bottom Left: State Agribusiness Consortium. Bottom Right: Peel Harvey Estuary. 22 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
Working in partnership to achieve The Department provides secretariat support Building Western Australia’s scientific better outcomes for the community to the Community Safety and Family expertise and capabilities The Department supports the reform and Support Cabinet Sub-Committee and leads The Office of Science, in collaboration with delivery of community services across the coordination across government agencies researchers, academia, industry and government Western Australian public sector with a to support the implementation of key policy at the local, national and international level, particular focus on working in partnership with commitments including the Methamphetamine is focussing on increasing the standing of the community services sector to achieve Action Plan, Stopping Family and Domestic Western Australia in the area of science. better outcomes for Western Australians. Violence, and Supporting Communities. This The Office of Science plays a key Key policy areas include disability services, includes working with the community sector leadership role in supporting the Aboriginal affairs, justice, youth, child to help break down the barriers between development of strategies identified in its protection and community safety. Strong government departments and stakeholders science priority areas. These include: relationships with other government agencies to support more integrated services. and not-for-profit service providers have The Department continues to coordinate »»The Premier’s Science Fellowship Program developed to drive collaboration in policy State bilateral negotiations in Indigenous »»The Science and Agribusiness development, service design and delivery Affairs, promoting the State’s interests on Connect (SAC) Program of community services. Common themes specific initiatives and advocating greater »»The Square Kilometre Array (SKA) include enhancing coordination of services alignment of Commonwealth investment radio astronomy project across multiple government agencies, with State Government initiatives such as »»A wide range of grant and award programs breaking down barriers between government the Regional Services and Aboriginal Youth The Premier’s Agriculture and Food Fellowship departments and stakeholders, choice Investment reforms. In 2016–17, support was under the SAC Program was launched in late and control for service users, co-design of also provided to the Royal Commission into 2016 with the inaugural Fellowship awarded services, devolving decision making and Institutional Responses to Child Sexual Abuse to Professor Simon Cook. Professor Cook is providing greater flexibility to the local level. by coordinating Western Australia’s participation an expert in agricultural systems and natural During 2016–17, the Department provided in roundtable discussions, submissions resource management. In partnership with oversight for the third year of the comparative to issues and consultation papers, and Curtin and Murdoch Universities Professor trials of the National Disability Insurance responses to notices to produce information. Cook is building and leading a research team Scheme (NDIS) in Western Australia and The Department is currently participating in Western Australia to develop the State’s the expansion into new geographic areas. in the Inter-jurisdictional Committee to capabilities in big data and agriculture and This included supporting negotiations to oversee the design of the Commonwealth establish the Centre for Digital Agriculture in WA. Government’s Redress Scheme. inform bilateral agreements between the The Premier’s inaugural Early-Mid Career State and Commonwealth Governments Fellow under the SAC Program was awarded to effectively deliver the NDIS in Western to Dr Fiona Evans in May 2017 and she will Australia, and to transition responsibilities work with the Premier’s Fellow to undertake for aged care and disability services. applied agrifood research, specifically focusing on transforming broadacre farming in Western Australia by combining big data, agronomic and economic models. AGENCY PERFORMANCE STRATEGIC GOAL 1: LEADERSHIP 23
The Office of Science launched the The Applied Research Program – Shark Premier’s Agriculture and Aquaculture Hazard Mitigation sponsored eight research Entrepreneurship Program, part of the SAC projects. The State Government recently Program, to foster innovation in the sector. announced a trial subsidy scheme for a Scholarship winners are developing their product that received research funding under innovations through interstate and overseas the program which tested an independently exposure to international best practice and verified shark repellent technology. leaders in their field and will share their The Office of Science engaged with learnings in regional WA in the areas of Cooperative Research Centre (CRC) shitake mushroom cultivation, soil liming, proponents, securing State Government marron farming and drone crop surveying. funding to support bids from the The Office of Science continues to cyber security and food agility CRC’s. lead Western Australia’s involvement in The Office is developing a strategic the SKA radio astronomy project. This approach to CRC’s with the aim to build includes assisting the Australian SKA and support CRC capability in WA. Office with a range of land access and To raise the State’s standing in the science, tenure issues, and working to maximise technology, engineering and mathematics benefits to Western Australia. (STEM) space, the Office of Science In addition, the State Government has sponsored FameLab with Perth hosting the made significant investment in radio national finals for this international science astronomy research capacity, capability communication competition. FameLab is and infrastructure. Current funding of $26 open to early career researchers in STEM million for 2014-2019 supports the ongoing and is a valuable platform for promoting operations of the International Centre for science as a career choice for youth and Radio Astronomy Research (ICRAR) which for communicating science discoveries to has over 120 researchers advancing Western a broad public audience. In 2016–17, the Australia’s science efforts in the SKA project. Office of Science supported a range of other STEM engagement initiatives including In 2016–17, the Office of Science managed Big Data Week, MicroBlitz and the WA funds applied to research into reducing Chinese Scientists Association Conference the risk of shark attacks off our beaches. on Science, Technology and Innovation.
Top: Her Excellency the Honourable Kerry Sanderson AC, Governor of Western Australia, with representatives from St Mary’s Anglican Girls’ School, John Curtin College of the Arts, the Department of the Premier and Cabinet and Scitech, at the launch of the 2017 Governor’s School STEM Awards. Bottom: Western Australian Chief Scientist Professor Peter Klinken FTSE AC and Ann Ritchie, wife of Ian Ritchie who was inducted, posthumously, to the WA Science Hall of Fame in 2016. 24 ANNUAL REPORT 2016–2017 The STEM Advisory Panel … includes leaders from across industry, research and education sectors and complements other initiatives that raise community awareness of the importance of STEM for future workforce needs.
Western Australian Chief Scientist Professor Peter Klinken FTSE AC and Chevron Science Engagement Initiative winners and finalists at the 2016 Premier’s Science Awards Ceremony.
The STEM Advisory Panel, chaired by the Chief will set the shape of the future for the In addition to the $1 million provided over Scientist Professor Peter Klinken FTSE AC, operations of Scitech. The Office of Science 5 years to the Perth Program Office of was formed in June 2017. The Panel includes will continue its work to support Government UNESCO’s Intergovernmental Oceanographic leaders from across industry, research and in the planning of a new location for Scitech. Commission, additional funding was education sectors and complements other provided by the Office of Science to The Office of Science is a member and initiatives that raise community awareness further the science underpinning marine sponsor of the Organising Committee for of the importance of STEM for future conservation, management and economic the Science on the Swan (SOS) Conference workforce needs. A priority for the Panel going development, as well as supporting the and Big Data Week (BDW). The SOS forward will be to develop and oversee the development and operation of a tsunami Conference is run collaboratively by all five implementation of the State STEM Strategy. warning and mitigation system. Western Australian universities in partnership The Office continues its contribution to with WA medical research institutes, key The Office of Science continues to work the planning and delivery of key science teaching and research hospitals, the WA with sectors across the State through engagement strategies and initiatives, Department of Health and the Office organisations such as the WA Marine Science including the Governor’s School STEM of Science. The 2017 Conference “One Institution (WAMSI), the WA Biodiversity Awards, the Premier’s Science Awards Health” focused on integrated effort of Science Institute (WABSI), Scitech and and the Perth Science Festival. multiple disciplines to seek root cause ChemCentre to deliver its science priorities. understanding of, and effective solutions to, The Office of Science also regularly engages The Office of Science continues its emergent infectious and acquired diseases with stakeholders on a range of science commitment to Scitech as Western Australia’s and marked the largest attendance for the priorities, including holding quarterly premier science centre, and supported an Conference with over 300 delegates. BDW meetings with WA’s five universities. independent evaluation panel to assess the held in May 2017, showcases WA’s digital Scitech 2018-2023 Business Plan which capabilities and highlights how data is used to drive efficiency and promote learning. AGENCY PERFORMANCE STRATEGIC GOAL 2: ORGANISATIONAL CAPABILITY 25 Strategic Goal 2: Organisational Capability Leading and supporting our people through providing development opportunities and an engaging work environment to produce the best services, and leaders for today and the future.
Providing employment and and experience to develop their inherent Further in support of people with disability, the career opportunities skills. Graduates are able to gain an insight Department launched a new Disability Access To meet the broad range of work performed to the operations of a central agency and and Inclusion Plan in 2016. The Plan includes by the Department, people are the key to the mechanics of bureaucratic processes seven outcomes that outline strategies to our success. Besides the usual management necessary to support government. ensure people with a disability have access and administrative positions required to Trainees work towards attainment of an to the same opportunities as others. accredited Certificate in Government support the operations of an organisation, Supporting and embracing and Graduate Development Officers other professions employed include policy cultural differences practitioners, project managers, scientific participate in the Public Sector Commission The Department employs staff from experts, researchers, analysts and chauffeurs. Graduate Development Program. 33 countries other than Australia. Nine In 2016–17, 17 positions were advertised, Supporting people with disabilities percent of the total workforce come from attracting 795 applications. Annually, the The Department continues to be committed a non-English speaking background. Department runs a Graduate program and in providing employment opportunities To celebrate cultural diversity, in 2016–17 four Graduate Development Officers were for people with a disability. The Supported the Department organised events during recruited in this financial year, to work mainly Work Team Program established in 2007, NAIDOC week, on Harmony Day and in the in the areas of policy support. In addition, one provides part-time employment for five Chinese New Year festive period. Morning school based trainee was employed to work employees with various types of disability. teas were held and information on the in support of corporate services functions. These employees are assigned administrative event was delivered through presentations, work based on their capability and skills. Graduates and trainees are assigned to information sheets and networking In working as a team, the employees different functional areas over the period amongst staff and invited guests. learn to work collaboratively with others of their initial employment, to provide them in an office work environment. Some of These events are part of the ongoing with a broad range of work experience. In these employees have been successful program facilitated to recognise the working with professionals and experts in in gaining full-time employment in other diverse cultures of our employees, to their respective fields, graduates receive areas in the public and private sector. build mutual respect and understanding invaluable on-the-job coaching, mentoring in order to form a cohesive workforce. 26 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
Supporting the health and well-being of employees The health and well-being of our workforce is valued by the Department. To ensure our employees are well supported in their work and personal lives, the Department has an established Employee Assistance Program. Through the program, employees are able to access confidential counselling services for personal or work related issues and to provide short-term psychological assistance for employees and their immediate family members who are in need. The OSH Committee comprise management and employee representatives. This Committee meets to discuss the safety of the workplace regularly and its representatives conduct ongoing inspections on all departmental offices. All managers and supervisors in the Department are required to complete monitored online Occupational Safety and Health (OSH) training. Since 2012, the Department has pledged support for the One Life Suicide Prevention Strategy (the Strategy) to achieve positive outcomes and better well-being for all West Australians. The Strategy outlines a significant State Government and community commitment to the prevention of suicide and self-harm. During the financial year, the Department continued to distribute suicide prevention awareness and stigma reducing messages to all staff through formal training for employees, lunchtime information sessions and publishing educational articles on related topics on the intranet. The Department organises a number of health at work activities including lunchtime information sessions on healthy living topics and free influenza vaccinations. Other activities include the facilitation of individual health checks, mole scans, blood donations and yoga at work. Supporting the community The Department has pledged support to Defence Force Reservists and is a listed Supportive Employer with the Defence Reserves Support Council. Defence Force Reservists called to serve their obligations are provided immediate access to leave. On a weekly basis, the Department promotes ‘free dress day’ with
funds raised going to various charities nominated by employees. In Bay and the Duyfken. Turtle 2016–17, donations totalling $3930.25 were raised through this activity. AGENCY PERFORMANCE STRATEGIC GOAL 3: IMPLEMENTATION 27 Strategic Goal 3: Implementation Providing implementation support through coordinating, monitoring and partnering.
The Department provides support and advice to stakeholders on a diverse range of projects and initiatives across Government, at local, national and international levels. The focus, in this regard, is to enable the delivery of initiatives that contribute to growing the Western Australian economy and ultimately improve the lives of Western Australians. Promoting Western Australia’s High Commissioner to the United Kingdom, the Hon Alexander Downer AC, Interests overseas and Agent General for Western Australia, Mr John Atkins, at the opening The Department’s three overseas offices of the Western Australian Garden at the Eden Project, Cornwall. (representing Europe, North Asia and the Middle East and Africa) pursued a number In October 2016, the Office participated organised and hosted the exhibition ‘Tech of trade and investment opportunities for at the biennial Euronaval 2016 maritime Australia’ as part of ‘London Tech Week’ Western Australia over the past year, acting defence exhibition to promote the State’s June 2017, alongside other State Offices as an important link for many industries to participatory interest in various Australian and Austrade. The event attracted over key overseas markets. This includes industries maritime defence new-build programs, 250 representatives from the UK and involved in maritime-related defence; including SEA 1000 and SEA 1180. Australian tech scenes including start- wine and fine food production; mining; ups, media and investors and provided an In collaboration with Tourism WA, the Agent agriculture and international education. excellent platform to display the successful General attended the opening of the Western industries operating in Western Australia. European Office Australia Garden at the Eden Project, Cornwall The European Office has an important role in May 2017. Created in collaboration with With respect to trade development in connecting Western Australian businesses Kings Park and Botanic Garden in Perth, this activities, the European Office also worked involved in the defence and naval shipbuilding marks the biggest-ever transformation of with a number of Western Australian industries. In 2016 the Agent General, with the Eden Project’s Mediterranean Biome and companies across various industry sectors, the former Minister for Commerce, the Hon showcases the unique flora of the State as particularly the oil and gas service support Michael Mischin MLC, visited German and well as the skills and talents of staff from sector and the wine industry, to develop Dutch shipyards shortlisted for the Offshore the Botanic Parks and Gardens Authority. export opportunities and relationship- building for their products and services. Patrol Vessel SEA 1180 program, to promote Building on the State’s focus on innovation the State as the build location for the project. and technology, the European Office co- 28 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
North Asia Office of doing business with Japan. In addition During 2016–17, the North Asia Office to the Foodex mission, the Office arranged facilitated visits by the then Treasurer, the and hosted visits by numerous Western Hon Mike Nahan MLA, and Members of the Australian producers, assisting many to Western Australian Legislative Council. identify importers for their products, The purpose of these visits was to meet ranging from fresh produce to olive with high level officers and executives in the oil and chia seeds. Equity investment public and private sectors to reaffirm and has also emerged from these trade extend Western Australia’s commitment to relationships, benefitting the expansion of its relationship with Japan. The Treasurer a number of Western Australian SMEs. conducted a highly successful seminar The Office also hosted visits by the Western attended by key players in the financial sector Australian Treasury Corporation, acting as in Japan. Following the seminar, meetings an important link between the Treasury were held with a number of companies Corporation and the Japanese financial that have strategic relationships with the sector. The Office produces a monthly Western Australian Treasury Corporation. newsletter in Japanese that has become Minerals and energy have long been the key a valuable tool in dispersing information pillars of Western Australia’s relationship with on the Western Australian economy Japan. The Office has now added agriculture and opportunities for investment. as an additional pillar and in line with this Promotion of Western Australian education facilitated the visits of over 30 different WA services is playing an increasingly important food companies including a 15 company role in the activities of the Office. In 2016, the strong mission to Foodex, Asia’s largest food Office organised for an influential group of and beverage trade show. A number of export Japanese study abroad education agents to Western Australian food exporters in Tokyo prepare for Foodex, Asia’s largest food trade fair. contracts were concluded as a result of this. tour Western Australian facilities and interact with key industry figures. This is an ongoing The development of the agriculture and increase lobbying activity in this sector. As project that has seen tangible results, with food supply capability of the State’s north Japan’s major airlines study the feasibility the number of Japanese students studying has become a major factor in increasing of re-establishing the route, the Office in in Western Australia increasing year on year. supply and the Japanese Government is conjunction with Tourism Western Australia, A recent highlight is the Tokyo City University proactively supporting Japanese private Perth Airports and the City of Perth continues program that facilitates three-month stays at sector investment in the region. A mission to present a viable case. Direct flights will Edith Cowan University for 300 students per covering the North West and sponsored by benefit not only the tourism and business year and will now expand to other universities. Japan’s Ministry of Agriculture, Food and travel sectors but also the high value and Forestry reaffirmed this commitment. The establishment of a direct flight between important live seafood trade between Japan With the Australia-Japan Free Trade Tokyo and Perth is an ongoing Office and WA. Japan remains a strong customer for Agreement now in place, our agricultural priority and 2016 saw the Office work with Western Australian seafood exporters and a producers are reaping substantial benefits the Australian Ambassador to Japan to direct flight will greatly enhance the trade. AGENCY PERFORMANCE STRATEGIC GOAL 3: IMPLEMENTATION 29
Middle East and Africa Office The highlight of the coordinated efforts was The role of the Western Australian Trade a joint industry-WATO booth at the Gulfood Office (WATO), based in Dubai, is to facilitate Manufacturing exhibition, a subsidiary of and encourage commercial, investment, Gulfood – the biggest food and beverage educational and cultural ties between the exhibition in the Middle East. The Western Middle East and African regions and Western Australian Government in partnership Australia. The team in Dubai focuses on with the Western Australian lupin industry, the Middle East market through proactive specifically Coorow Seeds, Golden West business development in the United Arab Foods, and The Lupin Co., exhibited under Emirates (UAE), Saudi Arabia, Egypt and the banner of ‘Western Australian Lupins’. Iran. A representative, based in Nairobi, Approximately 400 visitors attended the reports directly to the Commissioner and booth with over 130 enquiries recorded. caters for East Africa related activities. Western Australian Keynote Address Key WATO Initiatives at the Iran Mining Conference 2016 In light of Iran’s return to the global market GIWA Package Assisting Small in early 2016, WATO successfully secured a Exporters Lupin Middle East Project key note speaking slot for the Department Since the project’s inception in the second of Mines and Petroleum at the Iran Mining quarter of 2016, WATO in coordination Summit in December 2016. The aim of the with the Grains Institute of Western visit to Iran was to raise awareness of Western Australia (GIWA) and the Western Australian Australia’s mining expertise and establish a lupin industry have completed: network of those directly or indirectly involved »»Fact Finding Mission to the in Iran’s mining sector. The outcome of the UAE by 2 representatives positive response received by the Iranian »»Raising lupin profile to UAE and Government and mineral industry has yielded beyond through WATO coordinated a credible interest in investing in the Western marketing activities Australian mining industry by Iran’s steel »»Participation by lupin industry members manufacturing company. This company is through WATO support in the Gulfood showing significant interest in the State’s Manufacturing exhibition to confirm lupin magnetite reserves as a long-term supply for marketing and engagement efforts Iran’s growing steel industry. A return visit by Iranian officials occurred in February 2017 with further visits planned for 2017-18.
Top: The Western Australian Lupins exhibition stand was opened by the Agriculture Consul from the Australian Consulate Dubai, Dr James Wallner, and Commissioner of the Western Australian Trade Office, Mr Pankaj Savara. Industry partners were also present at the ceremony. Bottom: WATO hosted a high-level meeting at its Dubai Office with FST Company senior executives to further develop Iran’s growing interest in the WA mining sector. 30 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
Al Dahra Agriculture Company COMESA Memorandum of Understanding Invests in WA’s Glenvar Hay Activities – Training Workshop by the WATO has a long standing relationship with Department of Mines and Petroleum the Abu Dhabi based agriculture company Since the signing of the Common Market Al Dahra Agriculture. After 12 months of for Eastern and Southern Africa (COMESA) ongoing discussions with both Animal Memorandum of Understanding in 2014, Feed and Human Consumption divisions WATO Nairobi has successfully implemented of Al Dahra Agriculture in partnership with training and capacity building mining the Department of Agriculture and Food, programs run by the Department of Mines and Western Australia, Al Dahra has established Petroleum (now Mines, Industry Regulation a foothold in Perth with the prospect of and Safety) in Kenya, Ethiopia, Zambia, expansion. In November 2016, Al Dahra Zimbabwe and Nigeria. In each of these formally announced the acquisition of countries, a two-day workshop was held the majority shares of Glenvar Hay Pty entitled ‘Policy Capacity Building Workshop for Limited leading to the formation of a new a Successful and Sustainable Mining Sector’. entity Al Dahra Glenvar Hay Pty Limited. These workshops were sponsored by the Australian Government and jointly coordinated Murdoch participates at the with the respective national ministry. In Global Forum on Innovation total, the workshops were attended by more in Agriculture (GFIA) than 160 representatives from government, Through WATO support and coordination, non-government and the private sector. Murdoch University participated at GFIA 2017 held in Abu Dhabi as an exhibitor and Qantas opens greater trade presenter. WATO further supported the opportunities with new routes to Perth three member delegation with an in-market Qantas has officially announced its first visit program that included meetings with non-stop flight from London to Perth government and agriculture bodies, and commencing 25 March 2018, and has been site visits to the International Centre for promoting its newest flight destination in Biosaline Agriculture (ICBA) and University the Middle East region. Tourism WA and of UAE’s Agriculture Department. Qantas have also signed a $5.7 million marketing deal to promote the non-stop Perth-London route. WATO-Dubai will be supporting both Qantas and Tourism WA initiatives. During the recent regional cultural season, Qantas held an Iftar networking event Top: Coordinated by WATO, Murdoch University exhibition booth at GFIA promoted the university’s agriculture attended by WATO and members of the expertise to the UAE. Accompanied by the Commissioner of WATO, Mr Pankaj Savara, the Chairman of Saudi Australia Business Council, Mr Samir Gabbani (right) visited the Murdoch booth at GFIA. Australian and UAE business communities. Bottom: Commissioner of WATO, Mr Pankaj Savara, at Qantas Iftar event in Dubai, congratulating the Regional General Manager for Qantas Middle East, Mr Markus Svensson, on unprecedented ticket sales for its new non-stop Perth-London route. AGENCY PERFORMANCE STRATEGIC GOAL 3: IMPLEMENTATION 31
Managing State Occasions and official visits The Department coordinates and delivers State occasions, special events, community cabinet receptions and official visits, including visits by Heads of State, Heads of Government and Heads of Mission. 400th Anniversary of the Landing of Dirk Hartog at Cape Inscription The Department worked closely with Dutch Government representatives, the Shire of Shark Bay, the Gascoyne Development Commission, the Western Australian Museum and the Departments of Parks and Wildlife and Fisheries to deliver a range of initiatives to mark the 400th anniversary of the landing of Dirk Hartog on the west coast of Australia on 25 October 1616. The town of Denham was the focus of a five-day festival, drawing more than 7,500 attendees, and Denham itself has been transformed with a new jetty and redeveloped foreshore The then Minister for Culture and the Arts, the Hon John Day MLA, hosted a commemorative function at Cape Inscription on the morning of 25 October 2016. This required an early start for visitors to make the journey across to Dirk Hartog Island but was well rewarded to see more than 400 people, including a significant Dutch contingent, also make the journey to take part in the commemorative activities. The then Minister unveiled new interpretive material together with a striking structure on the headland displaying replicas of Hartog’s pewter dish and de Vlamingh’s dish that replaced it in 1697. The replica ship of the era, the Duyfken, sounded her cannon to signal the end of the event. The prominent art piece ‘Union’ installed on the Denham foreshore has quickly become a photo opportunity not to be missed by locals and visitors to the spectacular Shark Bay World Heritage Area, and new state-of-the-art digital multimedia panels in the Discovery Centre offer an exciting and modern way to learn, explore and become immersed in 400 years of history.
Left: Then Minister for Culture and the Arts, the Hon John Day MLA, and Mr James Dexter, WA Museum with the newly installed replica copies of the Hartog and de Vlamingh dishes at Cape Inscription. Right: ‘Union’ art piece installed on the Denham foreshore with views directly out to Dirk Hartog Island. 32 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
Dutch Royal Visit on the United Kingdom’s Westminster System Continuing to mark the 400th Anniversary of Government and represents the meeting of the Dirk Hartog Landing, Their Majesties of the ‘Trinity of Parliament’: the Crown’s King Willem-Alexander and Queen Maxima Representative (the Governor), the Legislative of the Netherlands made a two-day State Council and the Legislative Assembly. Visit to Western Australia on 31 October and The Department worked in conjunction 1 November 2016. Programme elements with the two houses of Parliament to included a Welcome to Country and Call make arrangements for the Ceremonial on the Governor of Western Australia, a Arrival of Her Excellency the Honourable heritage walk and Opening of the Travellers Kerry Sanderson AC, Governor of Western and Traders Exhibition at the Western Australia at the official Opening of Parliament Australian Maritime Museum, a visit to the on 11 May 2017. Ceremonial elements Shipwreck Gallery, a community reception, a included timed arrivals of Senior police and visit to Curtin University and a visit to Ascot military representatives, the Leader of the Racecourse to view the Melbourne Cup race. Opposition, the Premier and the Governor, Sister State Relationships a Guard of Honour and Military Band, 2016 marked the 35th Anniversary of the the Breaking of the Governor’s Standard Sister State relationship between Western and a Welcome to Country conducted Australia and Hyogo Prefecture, Japan. on the steps of Parliament House. Official Celebrations took place in April 2017 First Official Visits by Diplomatic and included an official visit by His Excellency Heads of Mission Mr Toshizo Ido, Governor of Hyogo, and The Department coordinated and a function at the Fraser Point Function facilitated 13 First Official Visits by Heads Centre including signing of a Memorandum of Mission (Ambassadors) over 2016–17, of Understanding, a performance by topping off a busy year. First Official Visits musicians from Hyogo and a reception. introduce the Heads of Mission to the Official Opening of the 40th key Western Australian office holders over Parliament of Western Australia Government, business, education and the Following State Elections, the first day the arts sectors. The aim is to establish initial two Houses meet is known as the Opening relationships and explore any opportunities of Parliament. The occasion is often marked which can be expanded on during the The Premier, the Hon Mark McGowan MLA, and His Excellency Mr by a ceremony. Steeped in tradition, the more Head of Mission’s tenure in Australia. Toshizo Ido, Governor of Hyogo Prefecture, at the State Reception to Commemorate the 35th Anniversary of the Sister State Relationship formal style Opening of Parliament is based between Western Australia and Hyogo Prefecture, Japan. State CeremonialAGENCY PERFORMANCE and Events 2016-2017STRATEGIC GOAL 3: IMPLEMENTATION 33
1 One Dutch Royal Visit Four Community Cabinet Receptions
4
35 years of Sister 400th Anniversary State Relationship of Dirk Hartog’s with Hyogo Landing at Cape Prefecture, Japan Inscription, Shark Bay 35 400
1 One State Opening of Parliament
13 Head of Mission Visits 13 34 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
Promoting collaboration in policy and planning In 2016–17, the Department supported the Partnership Forum, comprised of community sector and government agency leaders, which has overseen the implementation of the Delivering Community Services in Partnership Policy. A key focus of the Partnership Forum in 2016–17 was the development of integrated service systems, engagement of service users in co-design of community services, better use of data, and the joint development with
the Department of Child Protection and The Premier, the Hon Mark McGowan MLA, the Minister for Community Services, the Hon Simone McGurk MLA, Family Support of an outcomes framework and the Minister for Disability Services, the Hon Stephen Dawson MLC, convene the Community Services Roundtable for earlier intervention and family support. with leaders of the community sector.
In June 2017, the Premier convened the compliance with the Commonwealth State security and emergency inaugural Community Services Roundtable, a Native Title Act 1993. This includes as First management policy advice, discussion with sector leaders on emerging Respondent to native title claims and by development and coordination issues and opportunities for collaboration leading implementation of the six South West The Department, through the Office of across agencies. The Department commenced Settlement (the Settlement) Indigenous State Security and Emergency Coordination, consultation with the sector on the Land Use Agreements (ILUAs) and other provides advice and support to the Premier membership and terms of reference for a new native title agreements of State significance. Supporting Communities Forum to further on matters associated with state security build on the relationship between government Commencement and implementation of the and emergency management policy in and the community services sector to ILUAs has been delayed by legal proceedings, Western Australia. The Department works support the delivery of quality services. and is now anticipated to commence in in partnership with Western Australia Police late 2018. In the meantime, cross agency and other agencies to ensure that the Providing strategic, cross portfolio advice coordination continues through convening State meets its obligations under national on land, State and Commonwealth working groups, such as the South West counter-terrorism arrangements. This approvals and Indigenous issues Settlement Implementation Working Group, includes maintaining the arrangements for The Department, through the Land, to prepare agencies to meet their obligations the operation of the State Crisis Centre Approvals and Native Title Unit (LANTU), under the Settlement ILUAs. This includes to facilitate support to the Premier and provides strategic advice on multiple land the Noongar Standard Heritage Agreement Ministers in the event of a terrorist incident use policies and projects, and is the State’s and the Noongar Land Base Strategy both or other serious security incident. primary manager of Western Australia’s of which are already being implemented. AGENCY PERFORMANCE STRATEGIC GOAL 3: IMPLEMENTATION 35 In June 2017, the Premier convened the inaugural Community Services Roundtable, a discussion with sector leaders on emerging issues and opportunities for collaboration across agencies.
In addition, the Department provides The Department has also provided The Department has worked with State representation on the following groups the Premier with advice on a number agencies to ensure they are no longer and a number of related sub-bodies: of proposals for reform of counter- using or stocking PFAS fire-fighting foams. terrorism laws, including in relation to Regulatory agencies were also requested »»the Australia-New Zealand Counter- Commonwealth Government consultations to ensure industry is aware of the national Terrorism Committee; on amendments to the terrorism policy to phase out non-essential uses. »»the Australia-New Zealand Emergency provisions of the Commonwealth Criminal Management Committee; Negotiating and coordinating service Code. The Department has coordinated »»the Critical Infrastructure Western Australian State agencies’ delivery to the Indian Oceans Territories Advisory Council; and involvement in the inter-jurisdictional The Department continues to play an »»the State Emergency Management working group on implementation of important role in negotiations with the Committee (SEMC). the regime for post-sentence detention Commonwealth and State public sector Through the Australia-New Zealand Counter- of high risk terrorist offenders. agencies for the provision of a wide range Terrorism Committee, the Department of state-type services to the citizens of Support was provided to the Director General has participated in the development of a Christmas Island and the Cocos (Keeling) in his role as a member of the SEMC and National Strategy for Protecting Crowded Islands. These services are delivered in the the Department also participated in SEMC’s Places from Terrorism. It also has an ongoing Indian Ocean Territories under Western Risk Sub-Committee, and the Office of role facilitating policy work associated Australian laws applied as Commonwealth Emergency Management’s policy review with Western Australia’s engagement laws by State agencies, mostly under groups and workshops as appropriate. with the Commonwealth Government’s service delivery arrangements and at Critical Infrastructure Centre. Coordinating State engagement with the no cost to the State Government. During 2016, the Department participated Commonwealth on PFAS contamination in the inter-jurisdictional Taskforce that The Department coordinates State oversaw the implementation of a range of engagement with the Commonwealth initiatives agreed by the Council of Australian Department of Defence regarding Governments to counter violent extremism. investigations of potential Per- and Poly- Fluorinated Alkyl Substances (PFAS) at RAAF Base Pearce and HMAS Stirling Garden Island. 36 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017 Strategic Goal 4: Advice and Support Providing quality and timely policy advice to support the Premier and Cabinet. Delivering quality and timely services to support the administration of Government.
The Department plays a key role across Providing support and advice on a detection technology, in conjunction the public sector by ensuring that variety of projects across Government with the Office of the Government Chief the Premier and senior officials are Local Projects Local Jobs Information Officer, and supported Surf provided with high quality advice from The Department is working closely with Mr Life Saving WA to undertake a trial of drone a whole-of-government perspective. John Carey MLA, Parliamentary Secretary technology over the 2016–17 summer. The Department’s ongoing support for the to the Premier, and a number of State Veterans functions of the Premier and Cabinet involves: agencies to deliver the Local Projects Local The Department continued to provide Jobs program. More than 750 grants will be support to the Minister for Veterans until »»providing strategic advice and services delivered to local community organisations March 2017. Following the 2017 State pertaining to the operation of the Premier’s including sporting groups, local governments General Election support for the veterans’ office, ministerial offices and Members of and not-for-profit service providers. portfolio was transferred to the Department Parliament including former Members; of Local Government and Communities, »»coordinating and delivering various Bushfire remediation and recovery now the Department of Communities. official visits, State hospitality In 2016–17 the Department worked functions and special events; closely with other stakeholders on the The Department continued to provide »»conveying information to the Premier remediation and recovery efforts following the secretariat function for the Veterans and Cabinet Ministers about issues the devastating bushfires in Yarloop Advisory Council, a ten-member Council that may impact on their agencies, and surrounding areas in the Shires of that provides advice to the Minister for through the Cabinet referral process; Harvey and Waroona in January 2016. Veterans on matters relating to the Western »»supporting Executive Council Shark hazard mitigation Australian veteran community and offers a administrative processes; and In 2016-17 the Department continued to communication link between the Minister »»managing the Government’s work closely with stakeholders to oversee and the veteran community. The Council legislative program. the Government’s shark hazard mitigation met in September and November 2016 at strategy. New beach enclosures were Dumas House. In 2016 the Council focussed installed at Sorrento Beach in December on better understanding the availability 2016 and at Quinns Beach in January of mental health services for veterans in 2017. The Department also supported Western Australia and the promotion of a trial of the Clever Buoy sonar shark employment of ex-service personnel. SECTION TITLE STRATEGIC GOAL 4: ADVICE AND SUPPORT 37
WA Day A review into the State’s data linkage capabilities The Department has continued its support was led by Professor Klinken culminating in the of Celebrate WA to assist with activities preparation of the report A review of WA’s data that occur over the WA Day long weekend. linkage capabilities: developing a whole-of- government data linkage model that is currently The Western Australian of the Year Awards being considered by Government. The report Dinner, held on Friday 2 June 2017, was followed contains recommendations to improve current by a two-day festival at Elizabeth Quay, which data linkage service and expand this asset to included the State of the Art Music Festival. encompass a whole-of-government model. More than 90,000 people attended the festival at Elizabeth Quay between Sunday 4 and The Chief Scientist has provided expert Monday 5 June 2017, representing a 200% advice to the Office of Science on the design increase from the previous year, with attendance of Science and Agribusiness Connect’s figures consistently up across the State. The (SAC) constituent programs. Professor Premier opened the inaugural Bunbury event on Klinken chaired the evaluation Panels that The Premier, the Hon Mark McGowan MLA, and Her Excellency the Honourable Kerry WA Day and State Government representatives selected the inaugural Premier’s Fellow and Sanderson AC, Governor of Western Australia, at ANZAC Day commemorations 2017. attended other WA Day Festival events in Early-Mid Career Fellow, and also chaired Fremantle, Mandurah, Albany, Kalgoorlie- the panel recommending the scholarships The Department also provided secretariat Boulder, Geraldton and Port Headland. awarded under the Premier’s Agriculture and support to the ANZAC Day Trust. Following Aquaculture Entrepreneurship Program. amendments to the ANZAC Day Act 1960 Providing scientific advice to Government in March 2016, four new Trustees were The Western Australian Chief Scientist Professor A workshop with Western Australia’s four public appointed on 18 July 2016 for a three-year Peter Klinken FTSE AC, supported by the Office universities, CSIRO and key government agencies in term. The Trustees made recommendations of Science, provides expert independent advice the agricultural research sector was led by Professor to the Minister for Veterans in November to the State Government on Western Australia’s Klinken. The workshop mapped the State’s existing 2016 and grants were delivered to ex- science priorities and science strategies to collaborations and capacity in agriculture research service organisations in December 2016. build the economy, create jobs and encourage and development and identified opportunities for greater community engagement in science. growth within the agricultural research sector. The On 9 November 2016 the Government signed Chief Scientist has provided high level strategic a Heads of Agreement gifting the ANZAC Existing links with the Commonwealth advice on agricultural research including leading House site to the Returned and Services Government have been strengthened extensive engagement with the Department of League of Australia WA Branch (RSL WA), with the involvement of Professor Klinken Agriculture and Food WA, the Grains Research paving the way for a significant redevelopment as a member on the Commonwealth and Development Corporation and the Grains of the St Georges Terrace property. In Forum of Australian Chief Scientists. Industry Group on grains research in the State. recognition of the ANZAC Centenary Professor Klinken attended an International commemorations, the $3.36 million gift Professor Klinken has attended a large Conference on Science Advice to Government has allowed the RSL WA to redevelop the number of workshops and meetings, provided in Brussels and visited a number of science site to deliver a much needed increase in key note addresses and participated in event and technology parks and hubs in and around office space and upgrade of facilities. programs to advance Western Australia’s London, bringing valuable insight into what is on interests in science and innovation. offer internationally back to Western Australia. 38 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
Coordinating Western Australian Supporting Executive Government »»Economic and Expenditure Government input into and delivering services to Cabinet Reform Committee intergovernmental negotiations The Department provides procedural, The Economic and Expenditure Reform Committee met on 9 occasions prior The Department facilitates work across the public operational and other services to the change of Government in March sector to ensure the Premier, Cabinet and the to the Cabinet, including: 2017. It considered 182 reports, including Department’s senior officers are provided with »»programming Cabinet business 101 submissions from Ministers. 10 high quality advice regarding intergovernmental and setting agendas; matters were also considered by the matters from a whole-of-government »»supporting the operation of Treasurer under his delegated authority. perspective. In 2016–17, the Department the Executive Council; supported successful intergovernmental »»supporting the management of »»Aboriginal Affairs Cabinet Sub-Committee initiatives through the Council of Australian parliamentary business and the legislative The Aboriginal Affairs Cabinet Sub- Governments (COAG) in the areas of health, program of the Government; and Committee met on 3 occasions prior education, youth detention and child protection, »»administrative support to to the change of Government in March addressing methamphetamine use and reducing Cabinet Sub-Committees. 2017 and considered 21 reports. violence against women and their children. In 2016–17, support was provided for 40 »»Expenditure Review Committee During 2016–17, the Department also Cabinet meetings, including a regional The Expenditure Review Committee met facilitated the State’s input into negotiations Cabinet meeting in Moora and a community on 13 occasions. It considered 198 reports, on major free trade agreements such as Cabinet meeting in Midland. Cabinet including 90 submissions from Ministers. the Regional Comprehensive Economic considered a total of 648 submissions. 1 matter was also considered by the Partnership, the Pacific Agreement on Closer Treasurer under his delegated authority. Economic Relations Plus and the Indonesia- »»Jobs and Economic Diversification Australia Comprehensive Economic Partnership Cabinet Sub-Committee Agreement, as well as facilitating State The Jobs and Economic Diversification reporting to United Nations treaty bodies. Cabinet Sub-Committee met on 2 occasions and considered 16 reports. »»Community Safety and Family Support Cabinet Sub-Committee The Community Safety and Family Support Cabinet Sub-Committee met on 1 occasion and considered 11 reports.
The first Cabinet Meeting of the McGowan Ministry. AGENCY PERFORMANCE STRATEGIC GOAL 4: ADVICE AND SUPPORT 39
Parliamentary Services Educating students and the general Two one-day Schools Constitutional Assistance in managing the Government’s public about our parliamentary Conventions were held in September legislative program, including administrative and electoral systems 2016, attended by 240 Year 11 students. support for the Legislation Standing Students immersed themselves in a day The Constitutional Centre of Western Committee of Cabinet, was provided. of debate, discussion and lectures on Australia aims to: promote awareness of human rights and Australia’s Constitution. The 2016 Spring Sittings concluded on 1 our federal system of government with Fifteen of these students went on December 2016. The official opening of particular emphasis on its constitutional to represent Western Australia at the the fortieth Parliament was held on 11 May basis; encourage balanced debate about 2017 Nationals Schools Constitutional 2017, with the Autumn Sittings concluding our federal system of government; and Convention held in Canberra in March. on 29 June 2017. 41 Government Bills educate the general public about our and 1 Private Members’ Bill received parliamentary and electoral system. Primary and secondary pre-service teachers from Notre Dame University, Edith Cowan Royal Assent during the period. School Education Programs University and the University of Western Programs are targeted at primary and Australia participated in programs run Staff also managed the secondary students and include free by the Centre on strategies for engaging Parliamentary Questions database, civics and citizenship education activities students in civics and citizenship classes. coordinating responses to: targeted specifically at the current Western Australian school curriculum. 1, 619 Parliamentary Public programs Throughout the year a number of civics and Questions on Notice. In addition to the programs conducted in citizenship partnership events were held the metropolitan area, the Centre took 1, 070 Parliamentary providing information on how the three levels programs to regional areas of the State, Questions Without Notice. of government operate and why individual with education officers visiting areas not and community involvement makes for covered by current regional staffing. In a vibrant democracy, in addition to eight Executive Council 2016–17, education officers visited the wider public events which covered a range of 26 regular Executive Council meetings Esperance area as well Narrogin, Wagin and current constitutional and political topics. and 12 extraordinary meetings were held, Katanning. A teacher profession learning comprising a total of 599 submissions. event was also run at the Narrogin Regional In November 2016 the Constitutional Centre Assistance was also provided for: Education Office. More than 3000 students participated in Open House Perth. This »»the proclamation proroguing the Houses participated in sessions provided by regional event provided the public the opportunity and dissolving the Legislative Assembly; staff in the South West. Materials and to visit the Centre, bringing in visitors to »»the issue of writs for the 2017 State programs for remote and regional schools enjoy the heritage features of the building. General Election; continue to be distributed on a loan basis »»the swearing-in of the McGowan Labor throughout the state. 352 students and Government on 17 March 2017; teachers accessed programs in this format. »»the proclamations summoning the Houses for the official opening of the 40th Parliament on 11 May 2017. 40 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
Constitutional Centre Advisory Board Providing Ministerial Support Administration of entitlements The Constitutional Centre Advisory The Ministerial Support Unit (MSU) for Members Board is comprised of 11 members consists of Ministerial Support; Ministerial The Department provides support to all appointed for a three year term. Ms Air Charter; Correspondence and the Members of Parliament and their staff Cheryl Edwardes AM resigned from Community Comment Line. MSU works for the purpose of conducting their the Advisory Board in June 2017. together to provide strategic advice and parliamentary and electorate responsibilities. services in relation to the Premier’s Office Since the State General Election on 11 March Statistics and Ministerial Offices. MSU coordinated 2017 the Entitlements and Transport Branch the smooth transition in Ministerial Offices Website visits: 89,306 has been occupied managing the distribution as a result of the change of Government at of offices for the recently elected Members Visitors to the Centre: 24,168 the State General Election in March 2017. of the Legislative Assembly as well as those Community groups/Schools The Ministerial Merit Panel assesses newly elected Members of Legislative visits to the Centre: 42,884 the merits of any proposed staff to be Council who were sworn in on 22 May 2017. seconded or appointed to a Ministerial Extensive consultation with both outgoing Office. It advises the Director General on Printing and publishing services and incoming Members and excellent the classification and salary to be offered support provided by the Branch resulted for Parliament and Government to ensure a consistent approach to the in as smooth a transition as possible. As the Government’s official publisher, appointment process across all Ministerial the State Law Publisher publishes ‘under Offices. During 2016–17, the Ministerial Several electoral district boundary changes authority’ of the Government Printer, all Merit Panel considered 189 submissions. resulted in some Members of Parliament State legislation and legislation materials. requiring relocation to a new office to ensure The Community Comment Line and they are located within their electorate. The The State Law Publisher provides support Correspondence staff provide services Branch has been working closely with the for the Parliament of Western Australia which allow members of the public, Department of Finance to ensure the timely with the printing and processing of all government departments and agencies, completion of these projects. The majority of Chamber documents required for the community organisations and private these newly established offices for Members operation of both Houses of Parliament. businesses to convey their views to the will be due for occupation during 2018. Support and assistance is also provided with Premier and Ministers via telephone, emails the Bills and Tabled Papers databases. and letters. Major topics of concern to The Branch provided critical support Copies of these legislative publications the public over the year were Roe 8; Don’t and advice to new Members and can be ordered by telephone, mail, or Frack the Kimberley; Create Ranger Parks, electorate staff in respect to travel email. Online access to databases of Ban Plastic Bags and the Rangelands and other entitlements available. various current and archived legislation Reform petition. Throughout 2016–17 staff materials is also available on the State Law responded to 2,187 telephone calls and Publisher website at www.slp.wa.gov.au. actioned 1,981 items of correspondence. 2017 Caretaker Conventions enquiries received AGENCY PERFORMANCE 41 356 Advertising, Publications and Media Services Information Campaigns (51%) The Department of the Premier and Cabinet’s Media Services provide support to the Premier and Ministers 180 Operations – Public Sector Agencies (25%) as well as advising government agencies, through: 48 Members of Parliament (7%) »»managing the advertising and communication 39 Significant Appointments and approval process through the Independent Contracts of Employment (6%) Communication Review Committee; »»providing a media monitoring service of the print media 27 Caretaker Period (4%) and television/radio broadcasts to the Premier, Cabinet 23 General (3%) Ministers and a limited service providing media summaries to a range of government departments and agencies; and 18 Electronic Communications (3%) »»coordinating and distributing information to media 10 Political Participation by Public Sector Officers (1%) outlets, supporting ministerial media advisers, Coat of Arms/Common Badge (0%) and arranging and hosting ministerial media 1 conferences in the Dumas Media Room. Ministerial media statements are provided for public viewing at www.mediastatement.wa.gov.au and Change of Government Statistics: the media services team also maintains the web presence for the Premier of Western Australia and Cabinet Ministers at www.premier.wa.gov.au. To prepare for the State Elections: Statistics »»22 new Members to the Legislative Assembly »»The Department commenced work 12 months prior From July 1, 2016 to June 30, 2017 there were: »»15 new Members to the Legislative Council »»To perform audits for over 300 employment »»200 electorate staff ceasing employment and leave records 1,435 Ministerial media statements published »»208 new officers inducted to the Department »»97 induction packs were prepared and couriered on the Media Statements website. »»160 new electorate staff in Parliamentary out to incoming Members of Parliament 1,638,848 page views on the electorate offices Media Statements website. 303,607 page views on the Premier of Western Over 275 PCs replaced and updated. Australia & Cabinet Ministers website. 32 computers reconfigured and refreshed for new members. 1000+ new files created between January and March 2017. 54 mobile phones returned and reconfigured, 27 re-issued. 500+ archive boxes created between January and March 2017. 33 iPads returned and reconfigured, 11 reissued. 42 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017 The Department’s operations in 2016-17 were impacted by the State General Election and change of Government 03 in March 2017. Following the election, the Department has Significant Issues been supporting the Premier and Cabinet in implementing Impacting the Department the Government’s election commitments.
This includes the creation of the Jobs and Economic Diversification Cabinet Sub- Committee to drive the Government’s economic policy agenda and ensure implementation of election commitments under the Government’s Plan for Jobs. Support is provided to the Sub-Committee by the Department and a series of consortia have been held for the Premier, Ministers and Directors General to engage with a range of key industry growth sectors.
Pinnacles Desert, Nambung National Park. SIGNIFICANT ISSUES IMPACTING THE DEPARTMENT 43
The Department also provides support and The Department continues to provide Actual results versus budget targets advice to the Community Safety and Family ongoing support to ensure that future Support Cabinet Sub-Committee and arrangements for the National Disability 2016–17 2016–17 associated Directors General Implementation Insurance Scheme (NDIS) deliver the Target Actual Variance Group. The Sub-Committee was established desired outcomes for Western Australians $’000 $’000 $’000 to direct and oversee the integrated with a disability, their families, carers and Total cost of services 224,227 202,656 (21,947) implementation of the Government’s service providers. This includes assessing Net cost of services 220,279 193,202 (27,452) Methamphetamine Action Plan; Target 120 the most appropriate model for the NDIS in Total equity 39,870 100,144 60,264 – Plan to Target Juvenile Crime; Stopping Western Australia, and supporting bilateral Family and Domestic Violence policy; and negotiations with the Commonwealth. Net increase/(decrease) 27,088 85,237 58,149 the Supporting Communities policy. The in cash held The Department is working closely with Implementation Group has been established Government agencies on the State to oversee and direct agencies to work response to the Royal Commission into the 2016–17 2016–17 Variance collaboratively to implement the policies Institutional Responses to Child Sex Abuse. Target Actual as directed by the Sub-Committee. This includes the Government’s commitment Approved FTE 634 634 - A focus of the Department’s work continues on the removal of limitations periods that to be supporting the Premier in leading prevent survivors from taking legal action Western Australia’s engagement with other in relation to historic sexual abuse. jurisdictions, and driving the State’s strategic Explanation of Significant Variances The Department was also included agenda in bilateral and Council of Australian in the Government’s Machinery of Governments negotiations. Reform of the GST Total Cost of Services Government changes. From 1 July 2017, The actual result was less than the target and was mainly due to the sharing arrangements remains a high priority. the Department assumed responsibility deferral of payments for the Browse LNG Precinct Project that is still This aligns with a whole-of-government focus for Aboriginal affairs policy, and the Office subject to a Native Title determination. on Western Australia’s economic climate of Science and the Department’s three and the urgent need for Budget repair. Western Australian overseas offices were Net Cost of Services The actual result was less than the target and was mainly due to the The Department will continue to provide transferred to the Department of Jobs, deferral of payments for the Browse LNG Precinct Project that is still advice to the Premier on state security Tourism, Science and Innovation. subject to a Native Title determination. and emergency management matters, and coordinate the State’s involvement Total Equity in national counter-terrorism and The higher year-end balance was mainly due to a higher than expected emergency management arrangements. accumulated surplus for the period and the deferral of payments for the Browse LNG Precinct Project and the Native Title Land Equity Fund. Net increase/ (decrease) in cash held The increase in the cash balance is mainly due to unspent funds relating to the deferral of the payments for the Browse LNG Precinct Project and the Native Title Land Equity Fund. 44 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
04 Disclosures and Legal Compliance Canal Rocks, south-west WA. DISCLOSURES AND LEGAL COMPLIANCE INDEPENDENT AUDITOR’S REPORT 45 Independent Auditor’s Report
To the Parliament of Western Australia Basis for Opinion In preparing the financial statements, the I conducted my audit in accordance with Director General is responsible for assessing Department of the Premier and Cabinet the Australian Auditing Standards. My the agency’s ability to continue as a going Report on the Financial Statements responsibilities under those standards concern, disclosing, as applicable, matters are further described in the Auditor’s related to going concern and using the going Opinion Responsibilities for the Audit of the concern basis of accounting unless the I have audited the financial statements of Financial Statements section of my report. Western Australian Government has made the Department of the Premier and Cabinet I am independent of the Department in policy or funding decisions affecting the which comprise the Statement of Financial accordance with the Auditor General Act continued existence of the Department. Position as at 30 June 2017, the Statement 2006 and the relevant ethical requirements of Comprehensive Income, Statement of Auditor’s Responsibility for the of the Accounting Professional and Ethical Audit of the Financial Statements Changes in Equity, Statement of Cash Flows, Standards Board’s APES 110 Code of Ethics As required by the Auditor General Act 2006, Schedule of Income and Expenses by Service, for Professional Accountants (the Code) my responsibility is to express an opinion on Schedule of Assets and Liabilities by Service, that are relevant to my audit of the financial the financial statements. The objectives of and Summary of Consolidated Account statements. I have also fulfilled my other my audit are to obtain reasonable assurance Appropriations and Income Estimates for ethical responsibilities in accordance with about whether the financial statements as a the year then ended, and Notes comprising the Code. I believe that the audit evidence I whole are free from material misstatement, a summary of significant accounting policies have obtained is sufficient and appropriate whether due to fraud or error, and to issue and other explanatory information, including to provide a basis for my opinion. Administered transactions and balances. an auditor’s report that includes my opinion. Responsibility of the Director General Reasonable assurance is a high level of In my opinion, the financial statements for the Financial Statements assurance, but is not a guarantee that are based on proper accounts and present The Director General is responsible for an audit conducted in accordance with fairly, in all material respects, the operating keeping proper accounts, and the preparation Australian Auditing Standards will always results and cash flows of the Department and fair presentation of the financial detect a material misstatement when it of the Premier and Cabinet for the year statements in accordance with Australian exists. Misstatements can arise from fraud ended 30 June 2017 and the financial Accounting Standards, the Financial or error and are considered material if, position at the end of that period. They are Management Act 2006 and the Treasurer’s individually or in the aggregate, they could in accordance with Australian Accounting Instructions, and for such internal control as reasonably be expected to influence the Standards, the Financial Management Act the Director General determines is necessary economic decisions of users taken on 2006 and the Treasurer’s Instructions. to enable the preparation of financial the basis of the financial statements. statements that are free from material misstatement, whether due to fraud or error. 46 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
As part of an audit in accordance disclosures in the financial statements adequate to provide reasonable assurance with Australian Auditing Standards, I or, if such disclosures are inadequate, to that the receipt, expenditure and investment exercise professional judgment and modify my opinion. My conclusions are of money, the acquisition and disposal of maintain professional scepticism based on the audit evidence obtained property and the incurring of liabilities have throughout the audit. I also: up to the date of my auditor’s report. been in accordance with legislative provisions »»Evaluate the overall presentation, structure during the year ended 30 June 2017. »»Identify and assess the risks of material and content of the financial statements, misstatement of the financial statements, The Director General’s Responsibilities including the disclosures, and whether whether due to fraud or error, design and The Director General is responsible for the financial statements represent the perform audit procedures responsive to designing, implementing and maintaining underlying transactions and events in a those risks, and obtain audit evidence that is controls to ensure that the receipt, manner that achieves fair presentation. sufficient and appropriate to provide a basis expenditure and investment of money, for my opinion. The risk of not detecting I communicate with the Director General the acquisition and disposal of property, a material misstatement resulting from regarding, among other matters, the and the incurring of liabilities are in fraud is higher than for one resulting from planned scope and timing of the audit accordance with the Financial Management error, as fraud may involve collusion, forgery, and significant audit findings, including Act 2006, the Treasurer’s Instructions intentional omissions, misrepresentations, any significant deficiencies in internal and other relevant written law. or the override of internal control. control that I identify during my audit. Auditor General’s Responsibilities »»Obtain an understanding of internal control Report on Controls As required by the Auditor General Act relevant to the audit in order to design Opinion 2006, my responsibility as an assurance audit procedures that are appropriate in the I have undertaken a reasonable assurance practitioner is to express an opinion on the circumstances, but not for the purpose of engagement on the design and suitability of the design of the controls to expressing an opinion on the effectiveness implementation of controls exercised by the achieve the overall control objectives and the of the agency’s internal control. Department of the Premier and Cabinet. The implementation of the controls as designed. »»Evaluate the appropriateness of accounting controls exercised by the Department are I conducted my engagement in accordance policies used and the reasonableness those policies and procedures established with Standard on Assurance Engagements of accounting estimates and related by the Director General to ensure that ASAE 3150 Assurance Engagements on disclosures made by the Director General. the receipt, expenditure and investment Controls issued by the Australian Auditing and »»Conclude on the appropriateness of of money, the acquisition and disposal Assurance Standards Board. That standard the Director General’s use of the going of property, and the incurring of liabilities requires that I comply with relevant ethical concern basis of accounting and, have been in accordance with legislative requirements and plan and perform my based on the audit evidence obtained, provisions (the overall control objectives). procedures to obtain reasonable assurance whether a material uncertainty exists about whether, in all material respects, the related to events or conditions that may My opinion has been formed on the basis controls are suitably designed to achieve the cast significant doubt on the agency’s of the matters outlined in this report. overall control objectives and the controls, ability to continue as a going concern. In my opinion, in all material respects, the necessary to achieve the overall control If I conclude that a material uncertainty controls exercised by the Department of objectives, were implemented as designed. exists, I am required to draw attention the Premier and Cabinet are sufficiently in my auditor’s report to the related DISCLOSURES AND LEGAL COMPLIANCE INDEPENDENT AUDITOR’S REPORT 47
An assurance engagement to report on the the key effectiveness indicators and the key the Financial Management Act 2006 and the design and implementation of controls involves efficiency indicators that provide performance Treasurer’s Instructions and for such internal performing procedures to obtain evidence information about achieving outcomes and control as the Director General determines about the suitability of the design of controls delivering services. necessary to enable the preparation of key to achieve the overall control objectives performance indicators that are free from In my opinion, in all material respects, the key and the implementation of those controls. material misstatement, whether due to fraud performance indicators of the Department The procedures selected depend on my or error. of the Premier and Cabinet are relevant judgement, including the assessment of the and appropriate to assist users to assess In preparing the key performance indicators, risks that controls are not suitably designed the Department’s performance and fairly the Director General is responsible for or implemented as designed. My procedures represent indicated performance for the year identifying key performance indicators that included testing the implementation of those ended 30 June 2017. are relevant and appropriate having regard to controls that I consider necessary to achieve their purpose in accordance with Treasurer’s the overall control objectives. Matter of Significance Instruction 904 Key Performance Indicators. As stated in the key performance I believe that the evidence I have obtained is indicators, the Department of the Premier Auditor General’s Responsibility sufficient and appropriate to provide a basis and Cabinet received an exemption As required by the Auditor General Act for my opinion. from the Under Treasurer to report the 2006, my responsibility as an assurance Limitations of Controls following key effectiveness indicators practitioner is to express an opinion on Because of the inherent limitations of any for the year ended 30 June 2017: the key performance indicators. The internal control structure it is possible that, objectives of my engagement are to obtain »»Service recipients’ confirmation that even if the controls are suitably designed and reasonable assurance about whether the services provided enable them to meet implemented as designed, once the controls key performance indicators are relevant and Executive Government’s obligations are in operation, the overall control objectives appropriate to assist users to assess the »»Service recipients’ satisfaction with the may not be achieved so that fraud, error, or agency’s performance and whether the key policy advice provided in relation to Quality noncompliance with laws and regulations may performance indicators are free from material and Timeliness. occur and not be detected. Any projection of misstatement, whether due to fraud or error, the outcome of the evaluation of the suitability The exemption was approved because of and to issue an auditor’s report that includes of the design of controls to future periods is difficulty in collecting survey data for the first my opinion. I conducted my engagement subject to the risk that the controls may become 9 months of the financial year due to the in accordance with Standard on Assurance unsuitable because of changes in conditions. change of government following the March Engagements ASAE 3000 Assurance 2017 election. Consequently, these indicators Engagements Other than Audits or Reviews of Report on the Key Performance have not been reported. My opinion is not Historical Financial Information issued by the Indicators modified in respect of this matter. Australian Auditing and Assurance Standards Opinion Board. That standard requires that I comply I have undertaken a reasonable assurance The Director General’s Responsibility for with relevant ethical requirements relating to engagement on the key performance the Key Performance Indicators assurance engagements. indicators of the Department of the Premier The Director General is responsible for the and Cabinet for the year ended 30 June preparation and fair presentation of the key 2017. The key performance indicators are performance indicators in accordance with 48 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
An assurance engagement involves Matters Relating to the Electronic Department of the Premier and Cabinet performing procedures to obtain evidence Publication of the Audited about the amounts and disclosures in the Financial Statements and Key Certification of key performance indicators. It also involves Performance Indicators evaluating the relevance and appropriateness This auditor’s report relates to the financial Financial Statements of the key performance indicators against the statements and key performance indicators for the year ended 30 June 2017 criteria and guidance in Treasurer’s Instruction of the Department of the Premier and 904 for measuring the extent of outcome Cabinet for the year ended 30 June 2017 achievement and the efficiency of service included on the Department’s website. The The accompanying financial statements of the Department delivery. The procedures selected depend on Department’s management is responsible for of the Premier and Cabinet have been prepared in my judgement, including the assessment of the integrity of the Department’s website. compliance with the provisions of the Financial Management the risks of material misstatement of the key This audit does not provide assurance on the Act 2006 from proper accounts and records to present fairly performance indicators. In making these risk integrity of the Department’s website. The the financial transactions for the financial year ended 30 assessments I obtain an understanding of auditor’s report refers only to the financial June 2017 and the financial position as at 30 June 2017. internal control relevant to the engagement statements and key performance indicators At the date of signing we are not aware of any in order to design procedures that are described above. It does not provide an circumstances, which would render the particulars included appropriate in the circumstances. opinion on any other information which may in the financial statements misleading or inaccurate. have been hyperlinked to/from these financial I believe that the evidence I have statements or key performance indicators. obtained is sufficient and appropriate If users of the financial statements and key to provide a basis for my opinion. performance indicators are concerned with My Independence and Quality Control the inherent risks arising from publication Relating to the Reports on Controls on a website, they are advised to refer and Key Performance Indicators to the hard copy of the audited financial Gary Meyers I have complied with the independence statements and key performance indicators Chief Finance Officer requirements of the Auditor General Act 2006 to confirm the information contained 11 September 2017 and the relevant ethical requirements relating in this website version of the financial to assurance engagements. In accordance statements and key performance indicators. with ASQC 1 Quality Control for Firms that Perform Audits and Reviews of Financial Reports and Other Financial Information, and Other Assurance Engagements, the Darren Foster Office of the Auditor General maintains a Accountable Authority comprehensive system of quality control COLIN MURPHY 11 September 2017 including documented policies and AUDITOR GENERAL procedures regarding compliance with ethical FOR WESTERN AUSTRALIA requirements, professional standards and Perth, Western Australia applicable legal and regulatory requirements. 12 September 2017 DISCLOSURES AND LEGAL COMPLIANCE FINANCIAL STATEMENTS 49
Department of the Premier and Cabinet Statement of Comprehensive Income for the year ended 30 June 2017
Note 2017 2016 Note 2017 2016 $’000 $’000 $’000 $’000 COST OF SERVICES NET COST OF SERVICES 193,203 170,483 Expenses Employee benefits expense 6 86,415 83,500 INCOME FROM STATE GOVERNMENT Supplies and services 7 52,965 34,678 Service appropriation 203,088 167,749 Depreciation and amortisation expense 8 2,155 2,112 Services received free of charge 6,556 7,182 Accommodation expenses 9 21,367 21,661 Royalties for Regions Fund 1,465 1,742 Grants and subsidies 10 36,891 29,310 Total income from State Government 15 211,109 176,673 Loss on disposal of non-current assets 14 34 – Losses on hedging 190 27 SURPLUS/(DEFICIT) FOR THE PERIOD 26 17,906 6,190 Loss on other financial assets 43 1,983 3,007 Loss on foreign operation translation 349 – OTHER COMPREHENSIVE INCOME Other expenses 11 306 621 Items not reclassified subsequently to Total cost of services 202,656 174,916 profit or loss (Loss)/Gain on Foreign exchange 26 (134) (323) recognised directly in equity INCOME Total other comprehensive income (134) (323) Revenue Other revenue 12 6,842 1,549 TOTAL COMPREHENSIVE INCOME 17,772 5,867 Sales 1,443 1,437 FOR THE PERIOD Commonwealth grants and contributions 13 510 449 Interest revenue 658 740 Refer to the ‘Schedule of Income and Expenses by Service’. The Statement of Comprehensive Income should be read in conjunction with the accompanying notes. Gains on foreign operation translation – 226 Gain on disposal of non-current assets 14 – 32 Total Revenue 9,453 4,433
Total income other than income 9,453 4,433 from State Government 50 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
Department of the Premier and Cabinet Statement of Financial Position as at 30 June 2017
Note 2017 2016 Note 2017 2016 $’000 $’000 $’000 $’000 ASSETS LIABILITIES Current Assets Current Liabilities Cash and cash equivalents 27 51,491 38,962 Payables 23 5,270 1,628 Restricted cash and cash equivalents 16, 27 – 32,785 Provisions 24 13,828 18,627 Inventories 17 20 24 Other current liabilities 25 232 – Receivables 18 1,710 1,483 Total Current Liabilities 19,330 20,255 Amounts receivable for services 19 4,516 2,597 Other Current Assets 29 2,690 891 Non-Current Liabilities Total Current Assets 60,427 76,742 Provisions 24 2,532 3,529 Total Non-Current Liabilities 2,532 3,529 Non-Current Assets Restricted cash and cash equivalents 16, 27 33,746 – Total Liabilities 21,862 23,784 Amounts receivable for services 19 24,342 24,342 Other financial assets 43 84 118 Net Assets 100,144 82,372 Property, plant and equipment 20 2,756 4,332 Intangible assets 21 650 623 Equity 26 Total Non-Current Assets 61,578 29,414 Contributed equity 39,117 39,117 Hedging reserves (22) 112 TOTAL ASSETS 122,005 106,156 Accumulated surplus 61,049 43,143 Total Equity 100,144 82,372
Refer to the ‘Schedule of Assets and Liabilities by Service’ The Statement of Financial Position should be read in conjunction with the accompanying notes. DISCLOSURES AND LEGAL COMPLIANCE FINANCIAL STATEMENTS 51
Department of the Premier and Cabinet Statement of Changes in Equity for the year ended 30 June 2017
Contributed Accumulated Note equity Reserves Surplus/(deficit) Total equity Balance at 1 July 2015 39,117 435 36,953 76,505 Surplus/(deficit) – – 6,190 6,190 Other comprehensive income for the year – (323) – (323) Total comprehensive income for the year – (323) 6,190 5,867 Transactions with owners in their capacity as owners: Capital appropriations – – – – Total – – – – Balance at 30 June 2016 39,117 112 43,143 82,372
Balance at 1 July 2016 39,117 112 43,143 82,372 Surplus/(deficit) – – 17,906 17,906 Other comprehensive income for the year – (134) – (134) Total Movements – (134) 17,906 17,772 Balance at 30 June 2017 26 39,117 (22) 61,049 100,144
The Statement of Changes in Equity should be read in conjunction with the accompanying notes. 52 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
Department of the Premier and Cabinet Statement of Cash Flows for the year ended 30 June 2017
Note 2017 2016 Note 2017 2016 $’000 $’000 $’000 $’000 CASH FLOWS FROM STATE GOVERNMENT Receipts (cont.) Service appropriation 200,491 165,152 Other receipts 261 205 Holding Account drawdowns 679 3,422 Net cash provided by/(used in) 27 (186,202) (158,713) Royalties for Regions Fund 1,465 1,742 operating activities Net cash provided by State Government 202,635 170,316 CASH FLOWS FROM INVESTING ACTIVITIES Utilised as follows: Receipts CASH FLOWS FROM OPERATING ACTIVITIES Proceeds from the sale of non- – 31 current physical assets Payments Payments Employee benefits (83,555) (83,553) Purchase of non-current physical assets (642) (1,927) Supplies and services (51,940) (28,935) Investment in other financial assets (1,950) (3,000) Accommodation (23,101) (21,502) Net cash provided by/(used in) (2,592) (4,896) Grants and subsidies (36,950) (29,103) investing activities GST payments on purchases (11,498) (7,688) GST payments to taxation authority (205) (166) Net increase in cash and cash equivalents 13,841 6,707 Other payments (259) (208)
Cash and cash equivalents at 71,746 64,813 Receipts the beginning of period Other revenue 7,161 1,584 Sales of goods and services 1,450 1,483 Effects of exchange rate changes on (349) 226 Commonwealth grants and contributions 510 449 cash balances held in foreign currency Interest received 492 935 GST receipts on sales 238 165 CASH AND CASH EQUIVALENTS 27 85,237 71,746 GST receipts from taxation authority 11,193 7,621 AT THE END OF PERIOD
The Statement of Cash Flows should be read in conjunction with the accompanying notes. DISCLOSURES AND LEGAL COMPLIANCE FINANCIAL STATEMENTS 53
Department of the Premier and Cabinet Schedule of Income and Expenses by Service for the year ended 30 June 2017
Administration Administration of Executive of Executive Government Government Policy Government Government Policy Services Management Total Services Management Total COST OF SERVICES 2017 2016 2017 2016 2017 2016 COST OF SERVICES 2017 2016 2017 2016 2017 2016 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Expenses Income (cont.) Employee benefits 66,804 65,342 19,611 18,161 86,415 83,503 Gains on foreign – 226 – – – 226 expense operation translation Supplies and services 33,815 21,729 19,150 12,949 52,965 34,678 Gain on disposal of – 31 – 1 – 32 Depreciation and 1,211 1,781 945 331 2,156 2,112 non-current assets amortisation expense Total income other 2,732 2,386 6,721 2,047 9,452 4,433 Accommodation 18,974 19,010 2,393 2,651 21,367 21,661 than income from expenses State Government Grants and subsidies – 60 36,890 29,249 36,890 29,309 Loss on disposal of 19 – 15 – 34 – NET COST OF 118,761 106,021 74,442 64,454 193,204 170,485 non-current assets SERVICES Loss on Hedging 190 27 – – 190 27 Loss on other – 3 1,983 3,004 1,983 3,007 INCOME FROM STATE GOVERNMENT financial assets Service appropriation 121,752 103,239 81,336 64,510 203,088 167,749 Loss on foreign 349 – – – 349 – Resources received 3,671 3,938 2,885 3,244 6,556 7,182 operation translation free of charge Other expenses 131 465 176 156 306 621 Royalties for 76 58 1,389 1,684 1,465 1,742 Total cost of services 121,493 108,417 81,163 66,501 202,656 174,918 Regions Fund Total income from 125,499 107,235 85,610 69,438 211,109 176,673 State Government Income Other revenue 1,289 692 5,553 857 6,842 1,549 Surplus/(deficit) 6,738 (1,204) 11,167 4,984 17,905 6,188 Sales 1,443 1,437 – – 1,443 1,437 for the period Commonwealth grants – – 510 449 510 449 and contributions The Schedule of Income and Expenses by Service should be read in conjunction with the accompanying notes. Interest revenue – – 658 740 658 740 54 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
Department of the Premier and Cabinet Schedule of Assets and Liabilities by Service as at 30 June 2017
Administration of Executive Government Policy Government Services Management Total 2017 2016 2017 2016 2017 2016 $’000 $’000 $’000 $’000 $’000 $’000 ASSETS Current assets 33,860 16,664 26,567 60,079 60,427 76,743 Non-current assets 15,692 22,802 45,886 6,613 61,578 29,415 Total assets 49,552 39,466 72,453 66,692 122,005 106,158
LIABILITIES Current liabilities 10,926 15,230 8,403 5,026 19,329 20,256 Total non-current liabilities 1,418 2,633 1,114 896 2,532 3,529 Total Liabilities 12,344 17,863 9,517 5,921 21,861 23,785
NET ASSETS 37,208 21,603 62,936 60,771 100,144 82,373
The Schedule of Assets and Liabilities by Service should be read in conjunction with the accompanying notes. DISCLOSURES AND LEGAL COMPLIANCE FINANCIAL STATEMENTS 55
Department of the Premier and Cabinet Summary of Consolidated Account Appropriations and Income Estimates for the year ended 30 June 2017
2017 2017 2017 2016 ESTIMATE ACTUAL VARIANCE ACTUAL ACTUAL VARIANCE $’000 $’000 $’000 $’000 $’000 $’000 Delivery of Services Item 5 Net amount appropriated 169,587 200,723 31,136 200,723 165,384 35,339 to deliver services
Section 25 Transfer of service appropriation Amount Authorised by Other Statutes – Salaries and Allowances Act 1975 2,365 2,365 – 2,365 2,365 – Total appropriations provided 171,952 203,088 31,136 203,088 167,749 35,339 to deliver services
Capital Item 116 Capital Appropriation – – – – – – Administered Transactions Item 6 Administered grants, subsidies 15,837 16,137 300 16,137 26,593 (10,456) and other transfer payments Total Administered transactions 15,837 16,137 300 16,137 26,593 (10,456) GRAND TOTAL 187,789 219,225 31,436 219,225 194,342 24,883
Continued on page 56 56 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
Department of the Premier and Cabinet Summary of Consolidated Account Appropriations and Income Estimates (cont.) for the year ended 30 June 2017
2017 2017 2017 2016 ESTIMATE ACTUAL VARIANCE ACTUAL ACTUAL VARIANCE $’000 $’000 $’000 $’000 $’000 $’000 Details of Expenses by Service Administration of Executive 115,306 121,493 6,187 121,493 108,417 13,076 Government Services Government Policy Management 108,921 81,163 (27,758) 81,163 66,501 14,662 Total Cost of Services 224,227 202,656 (21,571) 202,656 174,918 27,738 Less total income (3,948) (9,452) (5,504) (9,452) (4,432) (5,020) Net Cost of Services 220,279 193,204 (27,075) 193,204 170,486 22,718 Adjustments (48,327) 9,884 58,211 9,884 (2,737) 12,621 Total appropriations provided 171,952 203,088 31,136 203,088 167,749 35,339 to deliver services
Capital Expenditure Purchase of non-current physical assets (3,422) (642) 2,780 (642) (1,927) 1,285 Adjustment for other funding sources – (2,780) (2,780) (2,780) (1,495) (1,285) Capital Contribution (appropriation) (3,422) (3,422) – (3,422) (3,422) –
Details of Income Estimates Income disclosed as Administered Income 15,837 16,137 300 16,137 26,593 10,456 15,837 16,137 300 16,137 26,593 10,456
Adjustments comprise movements in cash balances and other accrual items such as receivables, payables and superannuation. Note 35 “Explanatory statement” provides details of any significant variations between estimates and actual results for 2017 and between the actual results for 2016 and 2017. DISCLOSURES AND LEGAL COMPLIANCE NOTES TO THE FINANCIAL STATEMENTS 57
Department of the Premier and Cabinet Notes to the Financial Statements for the year ended 30 June 2017
1 Australian Accounting Standards 2 Summary of significant (b) Basis of preparation (c) Reporting entity General accounting policies The financial statements have The reporting entity comprises the The Department’s financial statements (a) General statement been prepared on the accrual Department of the Premier and Cabinet. basis of accounting using the for the year ended 30 June 2017 have The Department is a not-for-profit Mission historical cost convention. been prepared in accordance with reporting entity that prepares general The Department’s mission is to support Australian Accounting Standards. purpose financial statements in The accounting policies adopted the Premier and Cabinet in achieving The term ‘Australian Accounting accordance with Australian Accounting in the preparation of the financial the Government’s vision for all Western Standards’ includes Standards and Standards, the Framework, Statements statements have been consistently Australians, through leadership and Interpretations issued by the Australian of Accounting Concepts and other applied throughout all periods coordination and the promotion of Accounting Standard Board (AASB). authoritative pronouncements presented unless otherwise stated. excellence in the public sector. of the AASB as applied by the The Department has adopted The financial statements are The Department is predominantly any applicable, new and revised Treasurer’s instructions. Several of these are modified by the Treasurer’s presented in Australian dollars funded by Parliamentary appropriations. Australian Accounting Standards and all values are rounded to the The financial statements encompass from their operative dates. instructions to vary application, disclosure, format and wording. nearest thousand dollars ($’000). all funds through which the Department controls resources Early adoption of standards Note 3 ‘Judgements made by The Financial Management Act 2006 to carry on its functions. The Department cannot early adopt management in applying accounting an Australian Accounting Standard and the Treasurer’s instructions impose legislative provisions that policies’ discloses judgements that Services unless specifically permitted by have been made in the process The Department provides the TI 1101 Application of Australian govern the preparation of financial statements and take precedence over of applying the Department’s following services: Accounting Standards and Other accounting policies resulting in the Australian Accounting Standards, the »»Service 1: Administration of Executive Pronouncements. There has been no most significant effect on amounts Framework, Statements of Accounting Government Services – The early adoption of Australian Accounting recognised in the financial statements. Standards that have been issued or Concepts and other authoritative Department provides administrative amended (but not operative) by the pronouncements of the AASB. Note 4 ‘Key sources of estimation support to the Premier and Cabinet, Department for the annual reporting Where modification is required and has uncertainty’ discloses key assumptions Leader of the Opposition, Members period ended 30 June 2017. had a material or significant financial made concerning the future, and other of Parliament and Executive Council effect upon the reported results, details key sources of estimation uncertainty »»Service 2: Government Policy of that modification and the resulting at the end of the reporting period, Management – The Department financial effect are disclosed in the that have a significant risk of causing provides Strategic policy notes to the financial statements. a material adjustment to the carrying advice and Coordination to amounts of assets and liabilities the Premier and Cabinet within the next financial year. 58 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
The Department administers assets, designated as contributions by Net Appropriation Determination the funds are deposited into the liabilities, income and expenses on owners where the transfers are non- The Treasurer may make a Department’s bank account. behalf of Government which are discretionary and non-reciprocal. determination providing for Gains not controlled by, nor integral, to prescribed receipts to be retained (e) Income Realised and unrealised gains are the function of the Department. for services under the control of the Revenue recognition usually recognised on a net basis. These These administered balances and Department. In accordance with Revenue is recognised and measured at include gains arising on the disposal transactions are not recognised in the the most recent determination, as the fair value of consideration received of non-current assets and some principal financial statements of the quantified in the 2016-17 Budget or receivable. Revenue is recognised for revaluations of non-current assets. . Department but schedules are prepared Statements, the Department the major business activities as follows: using the same basis as the financial retained $12.609 million ($12.935 (f) Property, plant and equipment statements and are presented at Note Sale of goods million in 2016) from the following: Capitalisation/Expensing of assets 41 ‘Disclosure of administered income Revenue is recognised from the sale Items of property, plant and equipment »»Proceeds from fees and charges; and expenses by service’ and Note 40 of goods and disposal of other assets costing $5,000 or more are recognised »»Other departmental revenue. ‘Administered assets and liabilities’. when the significant risks and rewards as assets and the cost of utilising assets »»GST input credits of ownership transfer to the purchaser is expensed (depreciated) over their (d) Contributed equity »»GST receipts on sales and can be measured reliably. useful lives. Items of property, plant and AASB Interpretation 1038 »»Receipts of Interest for Browse LNG equipment costing less than $5,000 Contributions by Owners Made to Provision of Services Grants, donations, gifts and other are immediately expensed direct to Wholly-Owned Public Sector Entities Revenue is recognised upon the non-reciprocal contributions the Statement of Comprehensive requires transfers in the nature of delivery of the service to the client Revenue is recognised at fair Income (other than where they equity contributions, other than as a or by reference to the stage of value when the Department form part of a group of similar items result of a restructure of administrative completion of the transaction. obtains control over the assets which are significant in total). arrangements, to be designated Interest comprising the contributions, by the Government (the owner) as Initial recognition and measurement Revenue is recognised as the usually when cash is received. Property, plant and equipment are contributions by owners (at the time interest accrues. of, or prior to transfer) before such Other non-reciprocal contributions initially recognised at cost. Service Appropriations that are not contributions by owners transfers can be recognised as equity For items of property, plant and Service Appropriations are recognised are recognised at their fair value. contributions. Capital appropriations equipment acquired at no cost or for as revenues at fair value in the Contributions of services are only have been designated as contributions nominal consideration, the cost is their period in which the Department recognised when a fair value can be by owners by TI 955 Contributions fair value at the date of acquisition. by Owners made to Wholly Owned gains control of the appropriated reliably determined and the services Public Sector Entities and have been funds. The Department gains control would be purchased if not donated. Subsequent measurement of appropriated funds at the time The Department does not hold land, credited directly to Contributed Equity. Royalties for Regions funds are those funds are deposited to the buildings or infrastructure assets. As recognised as revenue at fair The transfers of net assets to/ bank account or credited to the such, items of property, plant and value in the period in which the from other agencies, other than ‘Amounts receivable for services’ equipment are carried at historical Department obtains control over as a result of a restructure of (Holding Account) held at Treasury. cost less accumulated depreciation the funds. The Department obtains administrative arrangements, are and accumulated impairment losses. control of the funds at the time DISCLOSURES AND LEGAL COMPLIANCE NOTES TO THE FINANCIAL STATEMENTS 59
Depreciation any accumulated amortisation and to the extent that they represent level of consumption or expiration of All non-current assets having a accumulated impairment losses. probable future economic benefits. the asset’s future economic benefits limited useful life are systematically and to evaluate any impairment risk Amortisation for intangible assets (h) Impairment of assets depreciated over their estimated from falling replacement costs. with finite useful lives is calculated Property, plant and equipment and useful lives in a manner that for the period of the expected intangible assets are tested for any Intangible assets with an indefinite reflects the consumption of their benefit (estimated useful life which indication of impairment at the end useful life and intangible assets future economic benefits. is reviewed annually) on the straight of each reporting period. Where there not yet available for use are tested Depreciation is calculated using line basis. All intangible assets is an indication of impairment, the for impairment at the end of each the straight line method [or other controlled by the Department have recoverable amount is estimated. reporting period irrespective of whether method, describe], using rates a finite useful life and zero residual Where the recoverable amount is less there is any indication of impairment. which are reviewed annually. value. The expected useful lives for than the carrying amount, the asset The Department does not have any Estimated useful lives for each each class of intangible asset are: is considered impaired and is written intangible assets with an indefinite life. class of depreciable asset are: down to the recoverable amount and an »»Software 3 Years impairment loss is recognised. Where an The recoverable amount of assets »»Furniture and fittings 5 years Computer Software asset measured at cost is written down identified as surplus assets is the higher »»Plant and equipment 5 – 10 years Software that is an integral part of to recoverable amount, an impairment of fair value less costs to sell and the »»Computer hardware 3 years the related hardware is recognised loss is recognised in profit or loss. Where present value of future cash flows »»Office establishment 4 to 10 year as property, plant and equipment. a previously revalued asset is written expected to be derived from the asset. (g) Intangible assets Software that is not an integral down to recoverable amount, the loss is Surplus assets carried at fair value have Capitalisation/Expensing of assets part of the related hardware is recognised as a revaluation decrement no risk of material impairment where Acquisitions of intangible assets recognised as an intangible asset. in other comprehensive income. As fair value is determined by reference costing $5,000 or more and internally Software costing less than $5,000 is the Department is a not-for-profit to market-based evidence. Where fair generated intangible assets costing expensed in the year of acquisition. entity, unless a specialised asset has value is determined by reference to $50,000 or more are capitalised. The depreciated replacement cost, surplus Website costs been identified as a surplus asset, the cost of utilising the assets is expensed assets are at risk of impairment and Website costs are charged as recoverable amount is the higher of (amortised) over their useful lives. Costs the recoverable amount is measured. expenses when they are incurred an asset’s fair value less costs to sell incurred below these thresholds are Surplus assets at cost are tested unless they relate to the acquisition or and depreciated replacement cost. immediately expensed directly to the for indications of impairment at development of an asset when they The risk of impairment is generally Statement of Comprehensive Income. the end of each reporting period. may be capitalised and amortised. limited to circumstances where an Intangible assets are initially recognised Generally, costs in relation to feasibility asset’s depreciation is materially See note 22 ‘Impairment of assets’ at cost. For assets acquired at no cost studies during the planning phase understated, where the replacement for the outcome of impairment reviews or for nominal cost, the cost is their of a website, and ongoing costs of cost is falling or where there is a and testing. fair value at the date of acquisition. maintenance during the operating significant change in useful life. Each See note 2(o) ‘Receivables’ and phase are expensed. Costs incurred in The cost model is applied for relevant class of assets is reviewed note 18 ‘Receivables’ for impairment of building or enhancing a website that subsequent measurement requiring annually to verify that the accumulated receivables. can be reliably measured, are capitalised the asset to be carried at cost less depreciation/amortisation reflects the 60 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
(i) Leases Subsequent measurement is at amortised The fair value of hedging derivatives is Hedge accounting is discontinued when The Department has entered cost using the effective interest method. classified as a non-current asset or a the Department revokes the hedging into a number of operating lease non-current liability if the remaining relationship, the hedging instrument The fair value of short-term receivables arrangements for the rent of the maturity of the hedge relationship expires or is sold, terminated, or and payables is the transaction cost aircraft, office buildings and motor is more than 12 months and as a exercised, or no longer qualifies for or the face value because there is no vehicles where the lessor effectively current asset or a current liability if hedge accounting. Any cumulative gain interest applicable and subsequent retains all of the risks and benefits the remaining maturity of the hedge or loss deferred in equity at that time measure is not required as the effect incidental to ownership of the items relationship is less than 12 months. remains in equity and is recognised of discounting is not material. held under the operating leases. Equal when the forecast transaction is Derivatives not designated into an instalments of the lease payments are The Department enters into derivative ultimately recognised in profit or loss. effective hedge relationship are classified charged to the Income Statement over financial instruments to manage its When a forecast transaction is no longer as a current asset or a current liability. the lease term as this is representative exposure to foreign exchange rate risk, expected to occur, the cumulative gain of the pattern of benefits to be by way of foreign exchange forward Hedge accounting or loss that was deferred in equity is derived from the leased property. contracts. Further details of derivative The Department designates certain recognised immediately in profit or loss. financial instruments are disclosed in hedging instruments, which include (j) Financial instruments Note 37 contains details of the fair note 37 to the financial statements. derivatives, embedded derivatives and In addition to cash, the Department has values of the derivative instruments non-derivatives in respect of foreign two categories of financial instrument: Derivatives are initially recognised used for hedging purposes. Movements currency risk, as either fair value hedges, at fair value at the date a derivative in the hedging reserve in equity »»Receivables; and cash flow hedges, or hedges of net contract is entered into and are are also detailed in note 26. Financial Liabilities measured at investments in foreign operations. »» subsequently remeasured to their amortised cost (k) Cash and cash equivalents fair value at each reporting date. The Hedges of foreign exchange risk on For the purpose of the Statement Financial Instruments have been resulting gain or loss is recognised in firm commitments and highly probable of Cash Flows, cash and cash disaggregated into the following classes: profit or loss immediately unless the forecast transactions are accounted for equivalent (and restricted cash and derivative is designated and effective as as cash flow hedges. At the inception of Financial Assets cash equivalent) assets comprise a hedging instrument, in which event, the hedge relationship the Department »»Cash and cash equivalents cash on hand and at bank. the timing of the recognition in profit documents the relationship between »»Restricted cash and cash equivalents or loss depends on the nature of the the hedging instrument and hedged (l) Accrued salaries »»Receivables hedge relationship. The Department item, along with its risk management The accrued salaries suspense account »»Amount Receivable for services designates certain derivatives as objectives and its strategy for (see note 16 ‘Restricted cash and cash Financial Liabilities either hedges of the fair value of undertaking various hedge transactions. equivalents’) consists of amounts paid »»Payables recognised assets or liabilities or firm Furthermore, at the inception of the annually into a suspense account over »»Other liabilities commitments (fair value hedges), hedge and on an ongoing basis, the a period of 10 financial years to largely »»Other liabilities – Derivatives hedges of highly probable forecast Department documents whether the meet the additional cash outflow in transactions or hedges of foreign hedging instrument that is used in a each eleventh year when 27 pay days Initial recognition and measurement currency risk of firm commitments hedging relationship is highly effective occur instead of the normal 26. No of financial instrument is at fair (cash flow hedges), or hedges of net in offsetting changes in fair values interest is received on this account. value which normally equates to the investments in foreign operations. or cash flows of the hedged item. transaction cost or the face value. DISCLOSURES AND LEGAL COMPLIANCE NOTES TO THE FINANCIAL STATEMENTS 61
Accrued salaries (refer note 23 longer required, in which case they constructive obligation as a result of period on national government “Payables”) represent the amount are valued at net realisable value. a past event and when the outflow bonds with terms to maturity that due to staff but unpaid at the end of resources embodying economic match, as closely as possible, the See note 17 ‘Inventories’. of the financial year, as the pay benefits is probable and a reliable estimated future cash outflows. date for the last pay period for that (o) Receivables estimate can be made of the amount of The provision for annual leave is financial year does not coincide Receivables are recognised at original the obligation. Provisions are reviewed classified as a current liability as with the end of the financial year. invoice amount less an allowance at the end of each reporting period. the Department does not have an Accrued salaries are settled within a for any uncollectable amounts (i.e. See note 24 ‘Provisions’. unconditional right to defer settlement fortnight of the financial year end. The impairment). The collectability of of the liability for at least 12 months Department considers the carrying receivables is reviewed on an ongoing (i) Provisions – employee benefits after the end of the reporting period. amount of accrued salaries to be basis and any receivables identified All annual leave and long service equivalent to its net fair value. as uncollectable are written-off leave provisions are in respect Long service leave against the allowance account. The of employees’ services up to the Long service leave is not expected to (m) Amounts receivable for allowance for uncollectable amounts end of the reporting period. be settled wholly within 12 months Services (holding account) (doubtful debts) is raised when after the end of the reporting period The Department receives income Annual leave there is objective evidence that the and is therefore recognised and from the State Government partly in Annual leave is not expected to be Department will not be able to collect measured at the present value of cash and partly as an asset (Holding settled wholly within 12 months after the debts. The carrying amount is amounts expected to be paid when Account receivable). The Holding the end of the reporting period and equivalent to fair value as it is due the liabilities are settled using the Account receivable balance, resulting is therefore considered to be ‘other for settlement within 30 days. remuneration rate expected to from service appropriation funding, is long-term employee benefits’. The apply at the time of settlement. accessible on the emergence of the See note 2(j) ‘Financial Instruments’ annual leave liability is recognised cash funding requirement to cover leave and note 18 ‘Receivables’. and measured at the present value When assessing expected future of amounts expected to be paid payments consideration is given to entitlements and asset replacement. (p) Payables when the liabilities are settled using expected future wage and salary levels See also note 15 ‘Income from State Payables are recognised at the amounts the remuneration rate expected to including non-salary components Government’ and note 19 ’Amounts payable when the Department apply at the time of settlement. such as employer superannuation receivable for services’. becomes obliged to make future contributions, as well as the experience payments as a result of a purchase When assessing expected future (n) Inventories of employee departures and periods of assets or services. The carrying payments consideration is given to Inventories are measured at the lower of service. The expected future amount is equivalent to fair value, as expected future wage and salary levels of cost and net realisable value. Costs payments are discounted using market settlement is generally within 30 days. including non-salary components are assigned by the method most yields at the end of the reporting such as employer superannuation appropriate to each particular class See note 2(j) ‘Financial Instruments’ period on national government contributions, as well as the experience of inventory, with the majority being and note 23 ‘Payables’. bonds with terms to maturity that of employee departures and periods valued on a first in first out basis. match, as closely as possible, the (q) Provisions of service. The expected future estimated future cash outflows. Inventories not held for resale are Provisions are liabilities of uncertain payments are discounted using market valued at cost unless they are no timing or amount and are recognised yields at the end of the reporting where there is a present legal or 62 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
Unconditional long service leave the fifth year of the agreement. The The GSS is a defined benefit scheme GSS transfer benefits attributable to provisions are classified as current provision recognises the value of salary for the purposes of employees and members who transferred from the liabilities as the Department does set aside for employees to be used in whole‑of‑government reporting. Pension Scheme, are assumed by the not have an unconditional right to the fifth year. This liability is measured However, it is a defined contribution Treasurer. All other GSS obligations are defer settlement of the liability for on the same basis as annual leave. plan for agency purposes because funded by concurrent contributions at least 12 months after the end of Deferred leave is reported as a current the concurrent contributions made by the Department to the GESB. the reporting period. Pre-conditional provision as employees can leave the (defined contributions) made by the Employees commencing employment and conditional long service leave scheme at their discretion at any time. Department to GESB extinguishes prior to 16 April 2007 who were provisions are classified as non-current the agency’s obligations to the Purchased leave not members of either the Pension liabilities because the Department related superannuation liability. The provision for purchased leave Scheme or the GSS became non has an unconditional right to defer relates to Public Service employees Employees commencing employment contributory members of the West the settlement of the liability until who have entered into an agreement to prior to 16 April 2007 who were State Superannuation Scheme (WSS). the employee has completed self-fund up to an additional 10 weeks not members of either the Pension Employees commencing employment on the requisite years of service. leave per calendar year. The provision Scheme or the GSS became non- or after 16 April 2007 became members Sick leave recognises the value of salary set aside contributory members of the West of the GESB Super Scheme (GESBS). Liabilities for sick leave are for employees and is measured at the State Superannuation Scheme (WSS). From 30 March 2012, existing members recognised when it is probable that undiscounted amounts expected to be Employees commencing employment of the WSS or GESBS and new employees sick leave paid in the future will paid when the liabilities are settled. on or after 16 April 2007 became became able to choose their preferred be greater than the entitlement members of the GESB Super Scheme superannuation fund. The Department Superannuation that will accrue in the future. (GESBS). From 30 March 2012, existing makes concurrent contributions to GESB The Government Employees members of the WSS or GESBS and or other funds on behalf of employees Past history indicates that on average, Superannuation Board (GESB) and new employees have been able to in compliance with the Commonwealth sick leave taken each reporting period other fund providers administer public choose their preferred superannuation Government’s Superannuation Guarantee is less than the entitlement accrued. sector superannuation arrangements fund provider. The Department makes (Administration) Act 1992. These This is expected to continue in future in Western Australia in accordance contributions to GESB or other fund contributions extinguish the liability periods. Accordingly, it is unlikely that with legislative requirements. Eligibility providers on behalf of employees in for superannuation charges in respect existing accumulated entitlements will criteria for membership in particular compliance with the Commonwealth of employees who are not members be used by employees and no liability schemes for public sector employees Government’s Superannuation Guarantee of the Pension Scheme or GSS. for unused sick leave entitlements vary according to commencement (Administration) Act 1992. Contributions is recognised. As sick leave is non- and implementation dates. The GSS is a defined benefit scheme to these accumulation schemes vesting, an expense is recognised in for the purposes of employees and Eligible employees contribute to the extinguish the Department’s liability the Statement of Comprehensive whole-of-government reporting. Pension Scheme, a defined benefit for superannuation charges in respect Income for this leave as it is taken. However, it is a defined contribution pension scheme closed to new of employees who are not members plan for agency purposes because Deferred leave members since 1987, or the Gold of the Pension Scheme or GSS. the concurrent contributions The provision for deferred leave relates State Superannuation Scheme (GSS), The Department has no liabilities (defined contributions) made by the to Public Service employees who have a defined benefit lump sum scheme under the Pension Scheme or the Department to GESB extinguishes entered into an agreement to self- closed to new members since 1995. GSS. The liabilities for the unfunded the agency’s obligations to the fund an additional 12 months leave in Pension Scheme and the unfunded related superannuation liability. DISCLOSURES AND LEGAL COMPLIANCE NOTES TO THE FINANCIAL STATEMENTS 63
The Department has no liabilities (r) Superannuation expense joint control. A joint operation involves 3 Judgements made by under the Pension Scheme or the Superannuation expense is recognised the use of assets and other resources management in applying GSS. The liabilities for the unfunded in the profit or loss of the Statement of the operators rather than the accounting policies Pension Scheme and the unfunded of Comprehensive Income and establishment of a separate entity. The The preparation of financial GSS transfer benefits attributable to comprises employer contributions paid Department recognises its interests statements requires management members who transferred from the to the GSS (concurrent contributions), in the joint operations by recognising to make judgements about the Pension Scheme, are assumed by the the WSS, the GESBS, or other the assets it controls and the liabilities application of accounting policies Treasurer. All other GSS obligations are superannuation funds. The employer that it incurs in respect of the joint that have a significant effect on the funded by concurrent contributions contribution paid to the GESB in arrangements. The Department amounts recognised in the financial made by the Department to the GESB. respect of the GSS is paid back into the also recognises the expenses that it statements. The Department evaluates Consolidated Account by the GESB. incurs and its share of the income The GESB makes all benefit payments these judgements regularly. that it earns from the sale of goods in respect of the Pension Scheme (s) Assets and services received or services by the joint operations. 4 Key sources of estimation and GSS, and is recouped from the free of charge or for nominal cost Treasurer for the employer’s share. Assets or services received free of The assets that the Department uncertainty charge or for nominal cost that the has employed in the joint operations Key estimates and assumptions See also note 2(r) ‘Superannuation Department would otherwise purchase are disclosed in note 43 ‘Other concerning the future are based on expense’. if not donated, are recognised as Assets (Joint Operations)’. historical experience and various (ii) Provisions – other other factors that have a significant income at the fair value of the assets (u) Comparative figures Employment On-Costs or services where they can be reliably risk of causing a material adjustment Comparative figures are, where Employment on-costs, including measured. A corresponding expense to the carrying amount of assets and appropriate, reclassified to be workers’ compensation insurance, is recognised for services received. liabilities within the next financial year. comparable with the figures presented are not employee benefits and are Receipts of assets are recognised in in the current financial year. Long Service Leave recognised separately as liabilities the Statement of Financial Position. Several estimations and assumptions and expenses when the employment (v) Foreign currency translation Assets or services received from used in calculating the Department’s to which they relate has occurred. The Department has offices in North other State Government agencies are long service leave provision include Employment on-costs are included as Asia, Europe and the Middle East. separately disclosed under Income expected future salary rates, discount part of ‘Other expenses’ and are not from State Government in the Transactions denominated in a foreign rates, employee retention rates and included as part of the Department’s Statement of Comprehensive Income. currency are translated using the expected future payments. Changes ‘Employee benefits expense’. average exchange rates or closing rates in these estimations and assumptions The related liability is included in (t) Joint operations in accordance with AASB 121. Monetary may impact on the carrying amount ‘Employment on-costs provision’. The Department has interests in assets and liabilities denominated in of the long service leave provision. joint arrangements that are joint See also note 11 ‘Other expenses’ foreign currencies are retranslated operations. A joint arrangement is a and note 24 ‘Provisions’. at the rate of exchange prevailing on contractual arrangement whereby balance sheet date. Exchange gains two or more parties undertake an and losses are brought to account in economic activity that is subject to determining the result for the year. 64 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
5 Disclosure of change in Accounting Policy and Estimates AASB 2015-2 Amendments to Australian Accounting Standards – Initial application of an Australian Accounting Standard Disclosure Initiative: Amendments to AASB 101 [AASB 7, 101, The Department has applied the following Australian Accounting Standards effective, or 134 & 1049] adopted, for annual reporting periods beginning on or after 1 July 2016 that impacted on This Standard amends AASB 101 to provide clarification regarding the disclosure the Department. requirements in AASB 101. Specifically, the Standard proposes narrow-focus amendments to address some of the concerns expressed about existing AASB 1057 Application Australian Accounting Standards presentation and disclosure requirements and to ensure entities are able to use This Standard lists the application paragraphs for each other Standard (and judgement when applying a Standard in determining what information to disclose Interpretation), grouped where they are the same. There is no financial impact. in their financial statements. There is no financial impact. AASB 2014-3 Amendments to Australian Accounting Standards – AASB 2015-6 Amendments to Australian Accounting Standards – Accounting for Acquisitions of Interests in Joint Operations Extending Related Party Disclosures to Not-for-Profit Public [AASB 1 & 11] Sector Entities [AASB 10, 124 & 1049] The Department establishes Joint Operations in pursuit of its objectives The amendments extend the scope of AASB 124 to include application by not- and does not routinely acquire interests in Joint Operations. Therefore, for-profit public sector entities. Implementation guidance is included to assist there is no financial impact on application of the Standard. application of the Standard by not-for-profit public sector entities. There is no AASB 2014-4 Amendments to Australian Accounting Standards – financial impact. Clarification of Acceptable Methods of Depreciation and AASB 2015-10 Amendments to Australian Accounting Standards – Amortisation [AASB 116 & 138] Effective Date of Amendments to AASB 10 & 128 The adoption of this Standard has no financial impact for the Department This Standard defers the mandatory effective date (application date) of as depreciation and amortisation is not determined by reference to revenue amendments to AASB 10 & AASB 128 that were originally made in AASB 2014-10 generation, but by reference to consumption of future economic benefits. so that the amendments are required to be applied for annual reporting periods AASB 2015-1 Amendments to Australian Accounting Standards – Annual beginning on or after 1 January 2018 instead of 1 January 2016. There is no Improvements to Australian Accounting Standards 2012- financial impact. 2014 Cycle [AASB 1, 2, 3, 5, 7, 11, 110, 119, 121, 133, 134, 137 & 140] Future impact of Australian Accounting Standards not yet operative These amendments arise from the issuance of International Financial Reporting The Department cannot early adopt an Australian Accounting Standard unless Standard Annual Improvements to IFRSs 2012-2014 Cycle in September 2014, specifically permitted by TI 1101 Application of Australian Accounting Standards and editorial corrections. The Department has determined that the application of and Other Pronouncements or by an exemption from TI 1101. By virtue of a the Standard has no financial impact. limited exemption, the Department has early adopted AASB 2015-7 Amendments to Australian Accounting Standards – Fair Value Disclosures of Not-for-Profit Public Sector Entities. Where applicable, the Department plans to apply the following Australian Accounting Standards from their application date. DISCLOSURES AND LEGAL COMPLIANCE NOTES TO THE FINANCIAL STATEMENTS 65
Operative for Operative for reporting periods reporting periods beginning on/after beginning on/after AASB 9 Financial Instruments 1-Jan-18 AASB 1058 Application of Australian Accounting 1-Jan-19 This Standard supersedes AASB 139 Financial Instruments: Recognition and Standards Measurement, introducing a number of changes to accounting treatments. This Standard clarifies and simplifies the income recognition requirements that apply to not-for-profit (NFP) entities, more closely reflecting the economic The mandatory application date of this Standard is currently 1 January 2018 reality of NFP entity transactions that are not contracts with customers. after being amended by AASB 2012-6, AASB 2013-9 and AASB 2014- Timing of income recognition is dependent on whether such a transaction 1 Amendments to Australian Accounting Standards. AASB 9 Financial gives rise to a liability, a performance obligation (a promise to transfer a good Instruments covers classification and measurement, impairment and hedge or service), or, an obligation to acquire an asset. The Department has not accounting. The Department has not assessed the impact of classification yet determined the application or the potential impact of the Standard. and measurement and impairment upon its financial statements but has determined the hedge accounting impact as not significant. AASB 2010-7 Amendments to Australian Accounting 1-Jan-18 Standards 1 Jan 2018 arising from AASB AASB 15 Revenue from Contracts with Customers 1-Jan-19 9 (December 2010) [AASB 1, 3, 4, 5, 7, This Standard establishes the principles that the Department shall apply to 101, 102, 108, 112, 118, 120, 121, 127, report useful information to users of financial statements about the nature, 128, 131, 132, 136, 137, 139, 1023 & amount, timing and uncertainty of revenue and cash flows arising from a 1038 and Int 2, 5, 10, 12, 19 & 127] contract with a customer. The Department’s income is principally derived This Standard makes consequential amendments to other Australian Accounting from appropriations which will be measured under AASB 1058 Income of Standards and Interpretations as a result of issuing AASB 9 in December 2010. Not-for-Profit Entities and will be unaffected by this change. However, the Department has not yet determined the potential impact of the Standard on The mandatory application date of this Standard has been amended by AASB ‘User charges and fees’ and ‘Sales’ revenues. In broad terms, it is anticipated 2012-6 and AASB 2014-1 to 1 January 2018. The Department has not assessed that the terms and conditions attached to these revenues will defer revenue the impact of classification and measurement and impairment upon its financial recognition until the Department has discharged its performance obligations. statements but has determined the hedge accounting impact as not significant. AASB 16 Leases 1-Jan-19 AASB 2014-1 Amendments to Australian Accounting 1-Jan-18 This Standard introduces a single lessee accounting model and requires a Standards lessee to recognise assets and liabilities for all leases with a term of more than Part E of this Standard makes amendments to AASB 9 and consequential 12 months, unless the underlying asset is of low value. Whilst the impact of amendments to other standards. The Department has not assessed the AASB 16 has not yet been quantified, the entity currently has operating lease impact of classification and measurement and impairment upon its financial commitments for $57.4 million over 5 years. The Department anticipates statements but has determined the hedge accounting impact as not significant. most of this amount will be brought onto the statement of financial position, excepting amounts pertinent to short-term or low-value leases. Interest and amortisation expense will increase and rental expense will decrease. 66 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
Operative for Operative for reporting periods reporting periods beginning on/after beginning on/after AASB 2014-5 Amendments to Australian Accounting 1-Jan-18 AASB 2016-2 Amendments to Australian Accounting 1-Jan-17 Standards arising from AASB 15 Standards – Disclosure Initiative: This Standard gives effect to consequential amendments to Australian Amendments to AASB 107 Accounting Standards (including Interpretations) arising from the issuance This Standard amends AASB 107 Statement of Cash Flows (August 2015) of AASB 15. The mandatory application date of this Standard has been to require disclosures that enable users of financial statements to evaluate amended by AASB 2015-8 to 1 January 2018. The Department has not yet changes in liabilities arising from financing activities, including both changes determined the application or the potential impact of the Standard. arising from cash flows and non-cash changes. There is no financial impact. AASB 2014-7 Amendments to Australian 1-Jan-18 AASB 2016-3 Amendments to Australian Accounting 1-Jan-18 Accounting Standards arising from Standards – Clarifications to AASB 15 AASB 9 (December 2014) This Standard clarifies identifying performance obligations, principal versus This Standard gives effect to the consequential amendments to agent considerations, timing of recognising revenue from granting a licence, Australian Accounting Standards (including Interpretations) arising from and, provides further transitional provisions to AASB 15. The Department the issuance of AASB 9 (December 2014). The Department has not yet has not yet determined the application or the potential impact. determined the application or the potential impact of the Standard. AASB 2016-4 Amendments to Australian Accounting 1-Jan-17 AASB 2014-10 Amendments to Australian Accounting 1-Jan-18 Standards – Recoverable Amount of Standards Non-Cash-Generating Specialised Sale or Contribution of Assets between an Investor and its Associate or Joint Assets of Not-for-Profit Entities Venture [AASB 10 & 128] This Standard amends AASB 10 and AASB 128 to This Standard clarifies that the recoverable amount of primarily non-cash- address an inconsistency between the requirements in AASB 10 and those generating assets of not-for-profit entities, which are typically specialised in AASB 128 (August 2011), in dealing with the sale or contribution of assets in nature and held for continuing use of their service capacity, is expected between an investor and its associate or joint venture. The Department has to be materially the same as fair value determined under AASB 13 Fair Value not yet determined the application or the potential impact of the Standard. Measurement. The Department has not yet determined the application or the AASB 2015-8 Amendments to Australian Accounting 1-Jan-19 potential impact. Standards – Effective Date of AASB 15 AASB 2016-7 Amendments to Australian Accounting 1-Jan-17 This Standard amends the mandatory effective date (application date) of AASB 15 Standards – Deferral of AASB 15 Revenue from Contracts with Customers so that AASB 15 is required to be applied for Not-for-Profit Entities for annual reporting periods beginning on or after 1 January 2018 instead of 1 January This Standard amends the mandatory effective date (application date) of AASB 2017. The Department’s income is principally derived from appropriations which will be 15 and defers the consequential amendments that were originally set out in measured under AASB 1058 Income of Not-for-Profit Entities and will be unaffected AASB 2014-5 Amendments to Australian Accounting Standards arising from by this change. However, the Department has not yet determined the potential impact AASB 15 for not-for-profit entities to annual reporting periods beginning on or of the Standard on ‘User charges and fees’ and ‘Sales’ revenues. In broad terms, it is after 1 January 2019, instead of 1 January 2018. There is no financial impact. anticipated that the terms and conditions attached to these revenues will defer revenue recognition until the Department has discharged its performance obligations. DISCLOSURES AND LEGAL COMPLIANCE NOTES TO THE FINANCIAL STATEMENTS 67
Operative for 6 Employee benefits expense reporting periods 2017 2016 beginning on/after $’000 $’000 AASB 2016-8 Amendments to Australian Accounting 1-Jan-19 Wages and salaries(a) 79,752 76,660 Standards – Australian Implementation Superannuation – defined contribution plans(b) 6,663 6,840 Guidance for Not-for-Profit Entities 86,415 83,500 This Standard inserts Australian requirements and authoritative implementation guidance for not-for-profit entities into AASB 9 and AASB 15. This guidance (a) Includes salaries and the value of the fringe benefit to the employees of the Department and of assists not-for-profit entities in applying those Standards to particular Electorate Offices, plus fringe benefits tax and leave entitlements. transactions and other events. There is no financial impact. (b) Defined contribution plans includes GESB superannuation schemes (Eg. West State, Gold State, GESB AASB 2017-2 Amendments to Australian Accounting 1-Jan-17 Super Scheme) and other eligible funds. Standards – Further Annual Employment on-costs expenses, such as workers’ compensation insurance are included within ‘Other expenses’. Refer note 11. Improvements 2014-2016 Cycle This Standard clarifies the scope of AASB 12 by specifying that the disclosure requirements apply to an entity’s interests in other entities that are classified 7 Supplies and services as held for sale, held for distribution to owners in their capacity as owners or 2017 2016 discontinued operations in accordance with AASB 5. There is no financial impact. $’000 $’000 Professional services 34,787 14,702 Travel 2,134 2,711 Other staff costs 172 222 Communications 2,003 2,245 Consumables 1,824 1,849 Lease of aircraft 6,796 6,872 Lease of motor vehicle 1,380 1,243 Computer software licenses 499 768 Contract – security 1,423 367 Contract – cleaning services 479 461 Other administration costs 1,467 3,238 52,965 34,678 68 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
8 Depreciation and amortisation expense 10 Grants and subsidies
2017 2016 2017 2016 $’000 $’000 $’000 $’000 Depreciation Recurrent Computer hardware 486 311 Subsidies and community grants 16,704 22,733 Furniture and fittings 16 16 Government agency grants 16,753 1,884 Motor vehicles 19 14 External grants 3,433 4,692 Office equipment 225 246 36,891 29,310 Office establishment 1,078 1,177 Total depreciation 1,824 1,765 11 Other expenses
Amortisation 2017 2016 Intangible assets $’000 $’000 (a) Software 331 347 Employment on-cost 99 371 Total amortisation 331 347 Audit Fees – Internal/External 206 249 306 620
Total depreciation and amortisation 2,155 2,112 (a) Includes workers’ compensation insurance.
12 Other revenue 9 Accommodation expenses 2017 2016 2017 2016 $’000 $’000 $’000 $’000 Contributions by eligible officers to the 129 136 Lease rentals and outgoings Government's Vehicle Schemes Department of Finance 7,655 7,504 Services provided to other agencies 12 12 Other 13,712 14,156 Recoups(a) 1,600 428 21,367 21,661 Overseas Offices 307 420 Miscellaneous funding(b) 4,795 553 6,842 1,549
(a) Consisting mainly of Fringe Benefits Tax refunds following re-assessment of 2012/13, 2013/14 and 2014/15 reporting periods. (b) Miscellaneous funding for 2016-17 includes the reimbursement from a private property owner in Yarloop for cleaning their affected properties ($4.7 million). DISCLOSURES AND LEGAL COMPLIANCE NOTES TO THE FINANCIAL STATEMENTS 69
13 Commonwealth grants and contributions 15 Income from State Government
2017 2016 2017 2016 $’000 $’000 $’000 $’000 Indian Ocean Territories 510 449 Appropriation received during the year: Service appropriations(a) 203,088 167,749 The funding received from the Commonwealth Department of Regional Australia, Local Government, Arts and Sport is to fund the salaries and on- costs for a State Coordinator and an Administrative Officer. The arrangement Services received free of charge from other State Government agencies between the Department of the Premier and Cabinet (the Department) and the during the period: Commonwealth Department of Regional Australia requires the Department to: Determined on the basis of the following estimates provided by agencies »»protect the State’s legal, financial and political interests; Department of Finance – lease administration 3,607 4,089 »»provide a first point of contact in Indian Ocean Territories (IOT) matters for State services and depreciation on fitouts Agencies; and to Department of the Attorney General – 2,634 2,944 »»facilitate the Commonwealth Government’s objective of comparability of rights, legal services standards and services in the IOT consistent with those of Western Australia. Department of Finance – procurement services – 120 Department of Transport – Mapping 4 – 14 Net gain/(loss) on disposal of non-current assets Landgate – spatial and valuation services 31 26 2017 2016 Office of Emergency Management – 253 – $’000 $’000 accommodation and parking bays Net book value of Disposal on Non-Current Assets Department of Planning – services for 27 5 maintenance of a public map viewer. Office equipment 4 – 6,556 7,182 Computer Hardware 30 – Motor vehicle – (3) Royalties for Regions Fund 34 (3) (b) Proceeds from Disposal of Non-Current Assets Regional Community Services Account 1,465 1,742 Office equipment – 3 1,465 1,742 Computer Hardware – – Motor vehicle – 32 211,109 176,673
– 35 (a) Service appropriations fund the net cost of services delivered. Appropriation revenue comprises a cash and non-cash component (receivable). The receivable (holding account) comprises the budgeted depreciation expense for the year and any agreed increase in leave liabilities during the year. Net gain/(loss) (34) 32 (b) This is a sub-fund within the over-arching ‘Royalties for Regions Fund’. The recurrent funds are committed to projects and programs in WA regional areas. 70 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
16 Restricted cash and cash equivalent assets 19 Amounts receivable for services (Holding Account) 2017 2016 2017 2016 $’000 $’000 $’000 $’000 Current Current 4,515 2,597 Browse LNG Precinct Agreement – 32,785 Non-current 24,342 24,342 28,857 26,939 Non Current Represents the non-cash component of service appropriations. See note 2(m) ‘Amounts Receivable for Services Accrued salaries suspense account(a) 274 – (Holding Account)’. It is restricted in that it can only be used for asset replacement or payment of leave liability. Browse LNG Precinct Agreement 33,472 – 20 Property, plant and equipment 33,746 – 2017 2016 (a) Amount held in a suspense account by the Department of Treasury for the purposes of meeting the 27th $’000 $’000 pay period that occurs every 11 years. Last paid in 2015-16. Computer Hardware 17 Inventories At cost 2,321 2,994 2017 2016 Accumulated depreciation (1,475) (1,754) $’000 $’000 845 1,240 Current Furniture and Fittings Inventories held for resale: At cost 501 501 Publications 19 23 Accumulated depreciation (419) (402) 82 98
Inventories not held for resale Motor Vehicles Stationery stores and material 1 2 At cost 96 95 Accumulated depreciation (25) (6) 20 25 70 89 18 Receivables Office Equipment 2017 2016 At cost 1,931 2,093 $’000 $’000 Accumulated depreciation (1,407) (1,479) Current 524 614 Receivables 976 1,271 Office Establishment GST receivable 733 212 At cost 8,480 8,459 Accumulated depreciation (7,246) (6,169) 1,710 1,484 1,234 2,291 See also note 2(o) ‘Receivables’ and note 37 ‘Financial Instruments’. Total 2,756 4,332 DISCLOSURES AND LEGAL COMPLIANCE NOTES TO THE FINANCIAL STATEMENTS 71
20 Property, plant and equipment (cont.) Reconciliations Reconciliations of the carrying amounts of plant, equipment and vehicles at the beginning and end of the current and previous financial year are set out below:
Computer Furniture Motor Office Office Hardware and Fittings Vehicles Equipment Establishment Total 2017 $’000 $’000 $’000 $’000 $’000 $’000 Carrying amount at start of year 1,240 98 89 614 2,291 4,332 Additions 121 – – 139 21 281 Disposals (30) – – (4) – (34) Depreciation (486) (16) (19) (225) (1,078) (1,824) Carrying amount at end of year 845 82 70 524 1,234 2,755
Computer Furniture Motor Office Office Hardware and Fittings Vehicles Equipment Establishment Total 2016 $’000 $’000 $’000 $’000 $’000 $’000 Carrying amount at start of year 428 157 10 543 3,390 4,528 Additions 1,123 (42) 96 317 78 1,572 Disposals – – (3) – – (3) Depreciation (311) (17) (14) (246) (1,177) (1,765) Carrying amount at end of year 1,240 98 89 614 2,291 4,332 72 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
21 Intangible assets 24 Provisions
2017 2016 2017 2016 $’000 $’000 $’000 $’000 Computer Software Current At cost 2,844 2,486 Employee benefits provision Accumulated amortisation (2,194) (1,863) Annual leave(a) 6,491 8,632 650 623 Long service leave(b) 7,294 9,936 13,785 18,568 Reconciliations: Other provisions Carrying amount at start of year 623 777 Employment on-costs(d) 43 59 Additions 358 193 43 59 Reclassifications – – Disposals – – 13,828 18,627 Amortisation expense (331) (347)
Carrying amount at end of year 650 623 Non-current Long service leave 2,524 3,462 22 Impairment of assets Deferred salary scheme(c) – 57 There were no indications of impairment of property, plant and equipment, and intangible assets at 30 June 2017. 2,524 3,519 Other provisions The Department held no goodwill or intangible assets with an indefinite useful life (d) during the reporting period and at reporting date there were no intangible assets not Employment on-costs 8 11 yet available for use. 8 11 23 Payables 2,532 3,529 2017 2016 $’000 $’000 Current Trade payables 2,147 3 Revenue In Advance – – Accrued salaries 256 – Accrued expenses 2,865 1,625 5,269 1,628
See also note 2(p) Payables and note 37 ‘Financial instruments’. DISCLOSURES AND LEGAL COMPLIANCE NOTES TO THE FINANCIAL STATEMENTS 73
(a) Annual leave liabilities have been classified as current as there is no unconditional (d) The settlement of annual and long service leave liabilities gives rise to right to defer settlement for at least 12 months after the reporting period. the payment of employment on-costs including workers’ compensation Assessments indicate that actual settlement of the liabilities will occur as follows: insurance. The provision is the present value of expected future payments. Other on-cost provisions also include the provision for the associated 2017 2016 superannuation expenses. The associated expense, apart from the unwinding $’000 $’000 of the discount (finance cost), is disclosed in note 11 ‘Other expenses’. Within 12 months of the end of the reporting period 4,236 5,613 Movement in Other Provisions More than 12 months after the 2,256 3,019 end of the reporting period 2017 2016 $’000 $’000 6,491 8,632 Employment on-cost provision (b) Long service leave liabilities have been classified as current where there is no Carrying amount at start of year 70 65 unconditional right to defer settlement for at least 12 months after the reporting period. Additional provisions recognised 456 372 Assessments indicate that actual settlement of the liabilities will occur as follows: Payments/other sacrifices of economic benefits (475) (367) 2017 2016 Carrying amount at end of year 51 70 $’000 $’000 Within 12 months of the end of the reporting period 2,978 4,304 More than 12 months after the 6,840 9,094 25 Other current liabilities end of the reporting period 2017 2016 9,818 13,398 $’000 $’000 Current (c) Deferred salary scheme liabilities have been classified as current where there is no unconditional right to defer settlement for at least 12 months after the end of Derivative Financial Liability 232 – the reporting period. Actual settlement of the liabilities will occur as follows: 232 –
See also note 37 ‘Financial Instruments’. 2017 2016 $’000 $’000 Within 12 months of the end of the reporting period – – More than 12 months after the – 57 end of the reporting period – 57 74 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
26 Equity 2017 2016 Equity represents the residual interest in the net assets of the Department. The $’000 $’000 Western Australian Government holds the equity interest in the Department on Non Current Assets behalf of the community. Restricted cash and cash 33,746 – 2017 2016 equivalents (refer to note 16) $’000 $’000 33,746 – Contributed equity Balance at the start of the year 39,117 39,117 Total Cash and cash equivalent 85,237 71,746
Balance at the end of the year 39,117 39,117 Reconciliation of net cost of services to net cash flows provided by/(used in) operating activities Hedging Reserve Net cost of services as per the Statement of (193,203) (170,483) Balance at the start of the year 112 435 Comprehensive Income Net revaluations increments/(decrements) (134) (323) Non-cash items: Balance at the end of the year (22) 112 Depreciation and amortisation expense 2,155 2,112 Resources received free of charge 6,556 7,182
Accumulated surplus/(deficit) Loss on Joint Venture 1,983 3,007 Balance at the start of the year 43,143 36,956 Net (gain)/loss on disposal of plant and equipment (34) (32) Result for the period 17,906 6,187 Net (gain)/loss on foreign exchange and hedging 190 27 Balance at the end of the year 61,049 43,143 (Increase)/decrease in assets: Current receivables 295 (101) 27 Notes to the Statement of Cash Flows Current inventories 5 10 Other current assets (1,799) 364 2017 2016 Increase/(decrease) in liabilities: $’000 $’000 Current payables 3,641 (2,187) Reconciliation of cash Current provisions (4,799) 1,085 Cash at the end of the financial year as shown in the Cash Flow Statement is reconciled to the related items in the Statement of Financial Position: Non current provisions (996) 459 Current Assets Other current liabilities 232 (3) Other provisions (19) – Cash and cash equivalents 51,491 38,962 Change in GST in receivables/payables (408) (153) Restricted cash and cash – 32,785 equivalents (refer to note 16) Net cash provided by/(used in) operating activities (186,202) (158,713) as per the Statement of Cash Flows 51,491 71,746 DISCLOSURES AND LEGAL COMPLIANCE NOTES TO THE FINANCIAL STATEMENTS 75
28 Services provided free of charge 30 Commitments During the year the following resources were provided to other agencies free 2017 2016 of charge for functions outside the normal operations of the Department: $’000 $’000 2017 2016 Lease commitments $’000 $’000 Commitments in relation to leases contracted for at the reporting date but Department of Finance – Library Services 44 67 not recognised in the financial statements are payable as follows: Department of Treasury – Library Services 45 58 Non-cancellable operating lease commitments: Public Sector Commission – includes some 711 485 Within 1 year 27,472 29,484 HR, IT, Records and Library Services. Later than 1 year and not later than 5 years 59,118 62,342 Parliamentary Commissioner for Administrative 156 132 86,590 91,826 Investigation – HR (payroll) Services Motor vehicle leases as part of the “whole of Government” arrangement: 956 742 Within 1 year 476 672
All the above expenses form part of the Department’s net cost of services. Later than 1 year but not later than 5 years 257 329 733 1,001
(a) 29 Other Current Assets Accommodation leases occupied by the Department : Within 1 year 19,607 24,028 2017 2016 Later than 1 year and not later than 5 years 55,353 56,636 $’000 $’000 74,960 80,664 Derivative Financial Assets – 47 Aircraft leases used by the Department(b): Prepayments 2,690 844 Within 1 year 7,389 4,783 2,690 891 Later than 1 year but not later than 5 years 3,508 5,377 10,897 10,160
These commitments are all inclusive of GST.
(a) The Department of the Premier and Cabinet has entered into property leases which are a non- cancellable leases with a five year term, with rent payable monthly in advance. Contingent rent provisions within the lease agreement require that the minimum lease payments shall be increased by market review in accordance with Landgate valuations. An option exists to renew the lease at the end of the five year term for an additional term of five years. (b) The Department negotiated a 2 year lease extension for each of the aircraft in 2016-17. Figures reflect the financial commitment in respect of re-negotiated lease agreements. Lease commitments comprise $3.5 million within one year and $1.8 million later than one year but no later than five years. Also included are commitments for management fees and maintenance cost of $3.9 million within one year and $1.7 million later than one year but not later than five years. 76 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
31 Compensation of Key Management Personnel 2017 2016 The Department of the Premier and Cabinet has determined that key management $’000 $’000 personnel includes the responsible Ministers and senior officers of the Department. Short-term employee benefits 2,788 3,074 However, the Department is not obliged to compensate the responsible Ministers and therefore disclosures in relation to Ministers’ compensation may be found in the Post-employments benefits 335 370 Annual Report on State Finances. Other long-term benefits 319 382 Total compensation for the key management personnel, comprising the Termination benefits 192 – accountable authority and other senior officers of the Department for the reporting Total Compensation of Senior Officers 3,634 3,826 period are presented within the following bands: The total remuneration includes the superannuation expense incurred by the Department in respect of senior officers. Compensation Band ($) 2017 2016 (a ) Includes newly appointed Director General from 3 May 2017 to 30 June 2017. 50,001 – 60,000 – 1 (b) Includes Director who departed on 24 Feb 2017. 90,001 – 100,000 – 1 (c) Includes a Director General who departed on 2 May 2017. 110,001 – 120,000(a) 1 1 (d) Includes a Director General who departed in September 2016. 180,001 – 190,000 1 – No Senior Officers are members of the Pension Scheme. 190,001 – 200,000 – 1 200,001 – 210,000 3 3 32 Remuneration of Auditor 210,001 – 220,000 – 1 2017 2016 220,001 – 230,000 1 1 $’000 $’000 240,001 – 250,000 – 2 Remuneration payable to the Auditor General for the financial year for the 250,001 – 260,000 1 – following services: 260,001 – 270,000 1 – Auditing the accounts, financial statements and 161 154 performance indicators 270,001 – 280,000 – 1 280,001 – 290,000 1 – 290,001 – 300,000 – 1 300,001 – 310,000(b) 1 – 310,001 – 320,000 1 – 330,001 – 340,000 2 – 350,001 – 360,000 – 1 390,001 – 400,000 – 1 410,001 – 420,000(c) 1 – 510,001 – 520,000(d) – 1 DISCLOSURES AND LEGAL COMPLIANCE NOTES TO THE FINANCIAL STATEMENTS 77
33 Supplementary Financial Information Significant transactions with government related entities »»Service appropriations (Note 15); 2017 2016 »»Services received free of charge from the agencies listed in (Note 15); $’000 $’000 »»Royalties for Regions Fund (Note 15); Write-offs »»Lease rental payments to the Department of Finance (Note 9); During the financial year there were amounts written off under the authority of »»Payments to the Department of Finance for utilities, telephony and section 48 of the Financial Management Act 2006. communication services (Note 7); Amounts written off by the Accountable Authority 9 – »»Commitments for future lease payments to the Department of Finance (Note 30); »»Insurance payments to the Insurance Commission and Riskcover fund (Note 7); »»Remuneration for services provided by the Auditor General (Note 32); Gifts of public property »»Grant payments to the Departments of Parks and Wildlife, Planning, Health, Gifts of public property provided by the Department 2 7 Culture and the Arts, Local Government and Communities, Child Protection and Family Support, Aboriginal Affairs (Indigenous), Housing and Training and Workforce Development and the Western Australian Museum (Note 10); »»Payments for professional services to the Department of Mines and Petroleum, 34 Related Party Transactions State Solicitor’s Office and Landgate (Note 7); The Department is a wholly owned and controlled entity of the State of Western »»Payments to Synergy for utilities (Note 7). Australia. In conducting its activities, the Department is required to pay various taxes and levies based on the standard terms and conditions that apply to all tax Material transactions with related parties and levy payers to the State and entities related to State. Related parties of the »»Grant payments to the University of Western Australia, Murdoch University and department include: Curtin University. »»Eighty eight per cent of the superannuation payments in Note 6 were to all Ministers and their close family members, and their controlled or jointly »» Government Employees Superannuation Board (GESB). controlled entities; »»Joint control of Western Australian Marine Science Institution (Note 43). »»all senior officers and their close family members, and their controlled or jointly controlled entities; The Department had no material related party transactions with Ministers/senior »»other departments and public sector entities, including related bodies included in officers or their close family members or their controlled (or jointly controlled) the whole of government consolidated financial statements; entities for disclosure. »»associates and joint ventures, that are included in the whole of government consolidated financial statements. 78 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
35 Explanatory Statement All variances between estimates (original budget) and actual results for 2016, and between the actual results for 2017 and 2016 are shown below. Narratives are provided for major variances, which are generally greater than: »»5% and $3.5 million for the Statements of Comprehensive Income and Cash Flows; and »»5% and $1.25 million for the Statement of Financial Position.
Variance between Variance between Estimate(a) Actual Actual estimate actual results for Variance 2017 2017 2016 and actual 2017 and 2016 Note $’000 $’000 $’000 $’000 $’000 STATEMENT OF COMPREHENSIVE INCOME (Controlled Operations) Expenses Employee benefits expense 1 82,405 86,415 83,500 4,010 2,915 Supplies and services 2, A 40,061 52,965 34,678 12,904 18,287 Depreciation and amortisation expense 2,597 2,155 2,112 (442) 44 Accommodation expenses 19,823 21,367 21,661 1,544 (294) Grants and subsidies 3, B 79,325 36,891 29,310 (42,434) 7,581 Loss on disposal of non-current assets – 34 – 34 34 Losses on foreign operation translation – 349 – 349 349 Losses on hedging – 190 27 190 163 Loss on other financial assets 4 – 1,983 3,007 1,983 (1,023) Other expenses 16 306 621 290 (315) Total cost of services 224,227 202,656 174,916 (21,571) 27,740 DISCLOSURES AND LEGAL COMPLIANCE NOTES TO THE FINANCIAL STATEMENTS 79
Variance between Variance between Estimate(a) Actual Actual estimate actual results for Variance 2017 2017 2016 and actual 2017 and 2016 Note $’000 $’000 $’000 $’000 $’000 STATEMENT OF COMPREHENSIVE INCOME (CONT.) Income Revenue Other Revenue 5, C 881 6,842 1,549 5,961 5,294 Sales 1,783 1,443 1,437 (340) 6 Commonwealth grants and contributions 457 510 449 53 61 Interest revenue 827 658 740 (169) (82) Gains on Foreign operation translation – – 226 – (226) Gain on disposal of non-current assets – – 32 – (32) Total Revenue 3,948 9,454 4,432 5,506 5,021
NET COST OF SERVICES 220,279 193,202 170,484 (27,077) 22,718
Income From State Government Service appropriation 6, D 171,952 203,088 167,749 31,136 35,339 Services received free of charge 7,437 6,556 7,182 (881) (626) Royalties for Regions Fund 4,059 1,465 1,742 (2,594) (277) Total income from State Government 183,448 211,109 176,673 27,661 34,436
SURPLUS/(DEFICIT) FOR THE PERIOD (36,831) 17,907 6,189 54,738 11,718
OTHER COMPREHENSIVE INCOME Items not reclassified subsequently to profit or loss Gain/(Losses) on Foreign exchange – (89) 323 (89) (412) recognised directly in equity TOTAL COMPREHENSIVE (36,831) 17,818 6,512 54,649 11,306 INCOME FOR THE PERIOD
(a) The budget estimates have been reclassified to align with the financial statement classification of income and expenditure items. 80 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
Variance between Variance between Estimate(a) Actual Actual estimate actual results for Variance 2017 2017 2016 and actual 2017 and 2016 Note $’000 $’000 $’000 $’000 $’000 STATEMENT OF FINANCIAL POSITION ASSETS Current Assets Cash and cash equivalents 7, E 24,792 51,491 38,962 26,699 12,529 Restricted cash and cash equivalents F – – 32,785 – (32,785) Inventories 39 20 25 (19) (5) Receivables 1,496 1,710 1,484 214 226 Amounts receivable for services 8, G 1,090 4,516 2,597 3,426 1,919 Other current assets 9, H 527 2,690 891 2,163 1,799 Total Current Assets 27,944 60,427 76,743 32,483 (16,317)
Non-Current Assets Restricted cash and cash equivalents 10, I 2,296 33,746 – 31,450 33,746 Amounts receivable for services 11 27,266 24,342 24,342 (2,924) – Other financial assets 124 84 118 (40) (33) Property, plant and equipment J 3,936 2,756 4,332 (1,180) (1,576) Intangible assets 777 650 623 (127) 27 Total Non-Current Assets 34,399 61,578 29,415 27,179 32,164
TOTAL ASSETS 62,343 122,005 106,158 59,662 15,847 DISCLOSURES AND LEGAL COMPLIANCE NOTES TO THE FINANCIAL STATEMENTS 81
Variance between Variance between Estimate(a) Actual Actual estimate actual results for Variance 2017 2017 2016 and actual 2017 and 2016 Note $’000 $’000 $’000 $’000 $’000 STATEMENT OF FINANCIAL POSITION (CONT.) LIABILITIES Current Liabilities Payables 12, K 1,450 5,269 1,628 3,819 3,641 Provisions 13, L 17,542 13,828 18,627 (3,714) (4,799) Other current liabilities 412 232 – (180) 232 Total Current Liabilities 19,404 19,329 20,255 (75) (927)
Non-Current Liabilities Provisions 3,069 2,532 3,529 (537) (996) Total Non-Current Liabilities 3,069 2,532 3,529 (537) (996)
Total Liabilities 22,473 21,859 23,785 (614) (1,926)
Net Assets 39,870 100,144 82,371 60,275 17,773
Equity Contributed equity 15,345 39,117 39,117 23,772 – Hedging reserves (435) (22) 112 413 (134) Accumulated surplus/(deficiency) 14, M 24,960 61,049 43,143 36,089 17,906 Total Equity 39,870 100,144 82,371 60,274 17,773
(a) The budget estimates have been reclassified to align with the financial statement classification of balance sheet items. 82 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
Variance between Variance between Estimate(a) Actual Actual estimate actual results for Variance 2017 2017 2016 and actual 2017 and 2016 Note $’000 $’000 $’000 $’000 $’000 STATEMENT OF CASH FLOWS CASH FLOWS FROM STATE GOVERNMENT Service appropriation 7, D 169,355 200,491 165,152 31,136 35,339 Holding account drawdowns N 1,179 679 3,422 (500) (2,743) Royalties for Regions Fund 4,059 1,465 1,742 (2,594) (277) Net cash provided by State Government 174,593 202,635 170,316 28,042 32,319
Utilised as follows: CASH FLOWS FROM OPERATING ACTIVITIES Payments Employee benefits (82,105) (83,555) (83,553) (1,450) (3) Supplies and services (32,634) (51,940) (28,935) (19,306) (23,005) Accommodation (19,823) (23,101) (21,502) (3,278) (1,599) Grants and subsidies 3, B (79,325) (36,950) (29,103) 42,375 (7,847) GST payments on purchases 15, P (8,261) (11,498) (7,688) (3,237) (3,810) GST payments to taxation authority (400) (205) (166) 195 (38) Other Payments (6) (259) (208) (253) (52)
Receipts Sales of goods and services 1,763 1,450 1,483 (313) (33) Commonwealth grants and contributions 457 510 449 53 61 Interest received 827 492 935 (335) (443) GST receipts on sales 329 238 165 (91) 73 GST receipts from taxation authority 16, Q 8,332 11,193 7,621 2,861 3,572 Other receipts 17, O 901 7,423 1,789 6,522 5,634 Net cash provided by/(used in) (209,945) (186,201) (158,712) 23,744 (27,489) operating activities SECTION TITLE SECTION HEADING 83
Variance between Variance between Estimate(a) Actual Actual estimate actual results for Variance 2017 2017 2016 and actual 2017 and 2016 Note $’000 $’000 $’000 $’000 $’000 STATEMENT OF CASH FLOWS (CONT.) CASH FLOWS FROM INVESTING ACTIVITIES Receipts Proceeds from the sale of non-current – – 31 – (31) physical assets Payments Purchase of non-current physical assets (1,179) (642) (1,927) 537 1,284 Investment in Other financial assets – (1,950) (3,000) (1,950) 1,050 Net cash provided by/(used in) (1,179) (2,592) (4,896) (1,413) 2,303 investing activities
Net increase/(decrease) in cash and (36,531) 13,841 6,707 50,372 7,133 cash equivalents Cash and cash equivalents at the beginning 63,619 71,746 64,813 8,127 6,933 of period Effects of exchange rate changes on cash – (349) 226 (349) (576) balances held in foreign currency CASH AND CASH EQUIVALENTS AT 27,088 85,237 71,746 58,149 13,490 THE END OF PERIOD
(a) The budget estimates have been reclassified to align with the financial statement classification of receipts and payments.
Major Variance Narratives (Controlled Operations) 3 Grants and Subsidies was $42 million (53.4%) lower than anticipated, the variance relates to the deferral of payments for Browse LNG ($30.9 million); Land and Equity Variances between estimate and actual Fund ($6.8 million); and South West Settlement – Noongar Land Fund ($2.8 million). 1 Employee Benefits expense was $4 million (4.8%) higher than anticipated and 4 Loss on Other Financial Assets ($1.9 million) mainly reflects the grants paid due to severances paid to staff as a result of the change in Government. to the Western Australian Marine Science Institution but reported as a Joint 2 Supplies and Services was $12 million (30.7%) higher than anticipated and mainly Venture Investment for accounting purposes. This payment was budgeted under due to expenses for the Yarloop Clean Up Project and offset by other savings. The Grants and Subsidies. Yarloop Project expenses were budgeted under Grants and Subsidies. 5 Other Revenue was higher than anticipated and mainly reflects the reimbursement from a private property owner in Yarloop for cleaning their affected properties ($4.7 million). 84 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
6 Service Appropriation increased by $31.1 million (18.10%) and was mainly due to B Grants and Subsidies increased by $7.6 million (26%) and mainly relates to an supplementary funding; $20.5 million for the Yarloop Clean Up Project; and $10 increase in Grants given by the Office of Science. million for Election costs due to the change in Government. C Other revenue was higher than last year mainly due to a reimbursement received from 7 The year end cash balance was $27 million (109%) higher than anticipated and was mainly a private property owner in Yarloop for cleaning their affected properties ($4.7 million). due to deferment of payment from the Land and Equity Fund ($6.8 million); carryover for D Service Appropriation increased by $35 million (21%) and was mainly due to Science Grants ($2.9 million); unspent funds for the Yarloop Clean Up project ($1.6 million); supplementary funding: $20.5 million for the Yarloop Clean Up Project; $10 savings by the Native Title Unit ($3.6 million); refund of Fringe Benefits Tax from the million for Election costs due to the change in Government; and $4.1 million for Australian Taxation Office ($1.3 million); increase in Payables ($3.4 million) (refer to Note 8); Local Project and Local Jobs Election Commitment. unspent Local Projects Local Jobs ($1.6 million); and other one off savings. E The year end cash balance increased by $12.5 million (32%) and was mainly due to 8 Amounts Receivable for Services was $3.4 million (314%) higher than original unspent funds for the Yarloop Clean Up Project ($1.6 million); savings by the Native budget due to the misalignment of the holding account in the original budget Title Unit expenses; refund of Fringe Benefits Tax from the Australian Taxation between current and non current assets. Office due to a change in valuation method for car bays ($1.3 million); carryover for 9 Other current assets increased by $2.1 million (410%) and mainly relates to Inquiry into Government Projects ($0.4 million); Deferral of expenditure for Local prepayment of accommodation in July 2017 for Dumas House. Projects Local Jobs ($1.6 million) and an increase in Payables. 10 The year end restricted cash balance was $31.4 million (1369%) greater than estimated, F The year end Restricted cash balance decreased by $32 million (100%) and was and was mainly due to deferment of the Browse LNG payment of $30.9 million. mainly due to the deferment of Browse LNG payment of $30.9 million to 2018- 11 The amount Receivable for Services decreased by $2.9 million (10.7%) and mainly relates 19, cash now treated as a Non Current Asset. to the payment of long service leave due to the 2017 State Election in March 2017. G Amount Receivable for Services increased by $1.9 million (74%) mainly relates to 12 Payables was $3.2 million (218%) higher than anticipated. This was mainly due to depreciation charges in 2016-17. the cost of the Yarloop Clean Up Project. H Other current assets increased by $1.8 million (202%) mainly relates to 13 Annual Leave and Long Service Leave provisions decreased by $3.7 million (21%) prepayment of July 2017 accommodation. and mainly relates to severances paid to staff due to the change in Government. I The year end restricted cash balance increased by $33.7 million (100%) and was mainly 14 The Accumulated Surplus was $37 million (148%) higher than anticipated. This mainly due to the deferment of the Browse LNG payment of $30.9 million and interest earned. reflects the deferral of the Browse LNG payment ($30.9 million) and Land Equity Fund J Property, Plant and Equipment decreased by $1.6 million (36%) mainly relates to payments ($6.8 million). depreciation charges of $2.1 million in 2016-17. 15 The GST payments were $3.2 million (39%) higher than anticipated due to an increase K Payables increased by $3 million (183%) mainly due to an increase in expenses in payments for supplies and services related to the Yarloop Clean Up Project. accrued for services relating to the Yarloop Clean Up Project. 16 GST receipts were $2.9 million (34%) higher than anticipated due to GST claims L Annual Leave and Long Service Leave provisions decreased by $4.8 million (25%) from the ATO for the Yarloop Clean Up Project. mainly relates to severances paid to Staff due to the change in Government. 17 Other receipts was $6.5 million higher than anticipated due to a reimbursement M The increase in the Accumulated Surplus of $18.5 million (43%) mainly reflects from a private property owner in Yarloop for cleaning their affected properties the 2016-17 surplus. The surplus mainly reflects leave payouts to staff, savings ($4.7 million) and Fringe Benefits Tax refund from the Australian Tax Office from the Native Title Unit, Actuarial gain on leave entitlements, unspent funds ($1.3 million) due to a change in car bay valuation. for the Yarloop Clean Up Project and savings on aircraft maintenance. N The actual drawdown from Holding Account decreased by $2.7 million (80%) Variances between actual results for 2017 and 2016 due to fewer ongoing projects under capital works in progress than last year. A Supplies and Services increased by $18.3 million (53%). The variance mainly O Other Revenue/Receipts increased by approximately $5 million and mainly relates to; $23 million for the Yarloop Clean Up Project; offset by savings of $3.2 reflects the reimbursement from a private property owner in Yarloop for cleaning million by the Native Title Unit; $1 million in Resources Received free of Charge their affected properties ($4.7 million). and $0.7 million for Air charter maintenance. DISCLOSURES AND LEGAL COMPLIANCE NOTES TO THE FINANCIAL STATEMENTS 85
P GST payments increased by $3.8 million (49.6%).This was mainly due to the 2017 2016 increase in amounts paid relating to the Yarloop Clean Up Project. $’000 $’000 Q GST receipts increased by $3.6 million (47%).This was mainly due to the increase in Balance at the start of the year 1,560 2,463 amounts claimed from the ATO for payments relating to the Yarloop Clean Up Project. Receipts 31 53 36 Special purpose accounts Payments (574) (956) The Gerald Frank Brown Memorial Trust Balance at the end of the year 1,017 1,560 Purpose of the Trust To hold money: The account was set up in April 2014 »»bequeathed to the Government of Western Australia by Gerald Frank Brown and DPC – Browse LNG Precinct Project Agreement Native Title Beneficiaries’ subsequently appropriated by Parliament; and Interest Bearing Trust A/C »»received from private organisations and persons for the provision of scholarships and studentships to young persons from the European Union Purpose of the Trust to visit Western Australia and/or young persons from Western Australia to The purpose of this account is to hold $30m being the State’s contribution of $10m visit countries within the European Union to undertake approved educational to the Economic Development Fund and $20m to the Indigenous Housing Fund activities for the purpose of promoting and enhancing the social, cultural, pursuant to the Browse LNG Precinct Project Agreement. historical and economic ties between Western Australia and Europe. 2017 2016 2017 2016 $’000 $’000 $’000 $’000 Balance at the start of the year 32,785 32,045 Balance at the start of the year 202 234 Receipts 687 740 Receipts 1 1 Payments – – Payments (16) (8) Balance at the end of the year 33,472 32,785 Unrealised gain/(loss) on translation (13) (25) The account was set up in December 2013 Balance at the end of the year 174 202
Overseas transactions have been translated in accordance with AASB 121, ‘The Effects of Changes in 37 Financial Instruments Foreign Exchange Rates’. (a) Financial Risk Management Objectives and Policies DPC Esperance Nyungar Government Indigenous Land Use Agreement Financial instruments held by the Department are cash and cash equivalents, restricted cash and cash equivalents, receivables, payables, forward foreign exchange Purpose of the Trust contracts. The Department has limited exposure to financial risks. The Department’s The purpose of this account is to hold the State’s contribution of $2.4m in an overall risk management program focuses on managing the risks identified below. interest bearing trust account for and on behalf of the Native Title Claim Group or the Prescribed Body Corporate until such time as the Prescribed Body Corporate Credit risk has submitted a budget and that budget is approved in accordance with clause 19.2 Credit risk arises when there is the possibility of the Department’s receivables of the Agreement. defaulting on their contractual obligations resulting in financial loss to the Department. The Department measures credit risk on a fair value basis and monitors risk on a regular basis. 86 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
The maximum exposure to credit risk at the end of the reporting period in Forward foreign exchange contracts relation to each class of recognised financial assets is the gross carrying amount The Department has entered into aircraft leases in USD with commitments of those assets inclusive of any allowance for impairment as shown in the table to purchase aircraft spare parts and meet maintenance costs in USD over the at Note 37 (c) ‘Financial instruments disclosures’ and Note 18 ‘Receivables’. life of the aircraft leases. The Department has entered into forward foreign exchange contracts to hedge the exchange rate risk arising from these Credit risk associated with the Department’s financial assets is minimal because anticipated future transactions, which where appropriate, are designated as the main receivable is the amounts receivable for services (holding account). For cash flow hedges. In the circumstances where the Department is unable to receivables other than government, the Department trades only with recognised, designate the forward exchange contracts as a cash flow hedge, the contract creditworthy third parties. The Department has policies in place to ensure that by default, is categorised as Fair Value Through Profit or Loss (FVTPL). sales of products and services are made to customers with an appropriate credit history. In addition, receivable balances are monitored on an ongoing basis with Cash flow hedge the result that the Department’s exposure to bad debts is minimal. At the end The effective portion of changes in the fair value of derivatives that are designated of the reporting period there were no significant concentrations of credit risk. and qualify as cash flow hedges are deferred in equity. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss as part of other Liquidity risk expenses or other income. Liquidity risk arises when the Department is unable to meet its financial obligations as they fall due. The Department is exposed to liquidity risk through its trading in the Amounts deferred in equity are recycled in profit or loss in the periods when the normal course of business. hedged item is recognised in profit or loss. However, when the forecast transaction that is hedged results in the recognition of a non-financial asset or a non-financial The Department has appropriate procedures to manage cash flows including liability, the gains and losses previously deferred in equity are transferred from drawdown of appropriations by monitoring forecast cash flows to ensure that equity and included in the initial measurement of the cost of the asset or liability. sufficient funds are available to meet its commitments. 2017 Recycled from Equity to Profit or Loss Market risk Market risk is the risk that changes in market prices such as foreign exchange rates <1 years 1-2 years 2-3 years 3-4 years 4-5 years and interest rates will affect the Department’s income or the value of its holdings Balance $’000 $’000 $’000 $’000 $’000 of financial instruments. There has been no change to the Department’s exposure DR 205 132 73 – – – to the market risk or the manner in which it manages and measures the risk. 2016 Recycled from Equity to Profit or Loss »»Interest Other than as detailed in the interest rate sensitivity analysis table at Note 37(c), <1 years 1-2 years 2-3 years 3-4 years 4-5 years the Department is not exposed to interest risk because apart from amounts in Balance $’000 $’000 $’000 $’000 $’000 restricted cash, all other cash and cash equivalents are non-interest bearing, and DR 116 116 – – – – have no borrowing. »»Foreign Currency As at reporting date the aggregate amount of unrealised losses under forward The Department undertakes certain transactions denominated in foreign foreign exchange contracts deferred in the hedging reserve relating to the exposure currencies, hence exposures to exchange rate fluctuations arise. This is managed on these anticipated future transactions is Dr $205,341 (2016: Dr $116,233). The within approved policy parameters such as utilising forward foreign exchange Department updates its forecast of foreign currency exposures at least as often as it contracts to hedge the exchange rate risk arising from foreign currency performs hedge effectiveness testing and in accordance with accounting policy the denominated lease and service contracts. Department reclassifies from the Cash Flow Reserve to Profit or Loss to the extent that foreign currency hedges are in excess of highly probable forecast transactions. DISCLOSURES AND LEGAL COMPLIANCE NOTES TO THE FINANCIAL STATEMENTS 87
It is the policy of the Department to enter into forward foreign exchange contracts 2017 2016 to cover specific foreign currency payments and receipts to approximately 100% $’000 $’000 of the exposure generated. To the extent the foreign currency payments and Financial Liabilities receipts are no longer expected to occur the Department may from time to time have forward foreign exchange contracts in excess of the forecast foreign currency Payables 2,147 3 payments or receipts as originally forecast. Derivatives – Cash Flow 232 – The following table details the forward foreign currency contracts outstanding as Derivatives – FVTPL – – at reporting date: 2,379 3
Foreign (a) The amount of receivables excludes GST recoverable from ATO (statutory receivable). Ave Exchange Currency Contract (c) Financial Instrument Disclosures Rate Purchased Value Fair Value Credit Risk Outstanding 2017 2016 2017 2016 2017 2016 2017 2016 The following table details the Department’s maximum exposure to credit Contracts $’000 $’000 $’000 $’000 $’000 $’000 risk and the ageing analysis of financial assets. The Department’s maximum < 1 year 0.7373 0.7512 3,096 2,129 4,199 2,835 (167) 47 exposure to credit risk at the end of the reporting period is the carrying amount 1 to 2 years 0.7370 1,088 – 1,476 – (65) – of financial assets as shown below. The table discloses the ageing of financial assets that are past due but not impaired and impaired financial assets. The table is based on information provided to senior management of the Department. (b) Categories of Financial Instruments The carrying amounts of each of the following categories of financial assets and The Department does not hold any collateral as security or other credit financial liabilities at the balance sheet date are as follows: enhancement relating to the financial assets it holds. The Department does not hold any financial assets that had to have their terms 2017 2016 renegotiated that would have otherwise resulted in them being past due or impaired. $’000 $’000 Financial Assets Cash and cash equivalents 51,491 38,962 Restricted Cash and cash equivalents 33,746 32,784 Receivables(a) 976 1,271 Derivatives – Cash Flow – 42 Derivatives – FVTPL – 5 Amount receivable for services 28,857 26,939 115,070 100,003 88 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
Ageing analysis of financial assets(a)
Past due but not impaired Not past Impaired Carrying due and not Up to 1 3 months to More than 5 financial Amount impaired month 1-3 months 1 year 1-5 years years assets $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 2017 Financial Assets Cash and cash equivalents 51,491 51,491 – – – – – – Restricted cash and cash equivalents 33,746 33,746 – – – – – – Receivables 976 943 943 33 – – – – Derivatives – Cash Flow – – – – – – – – Amount receivable for services 28,857 28,857 – – – – – – 115,070 115,037 943 33 – – – –
2016 Financial Assets Cash and cash equivalents 38,962 38,962 – – – – – – Restricted cash and cash equivalents 32,784 32,784 – – – – – – Receivables 1,271 1,271 1,271 – – – – – Derivatives – Cash Flow 47 47 – – – – – – Amount receivable for services 26,939 26,939 – – – – – – 100,003 100,003 1,271 – – – – –
(a) The amount of receivables excludes the GST recoverable from the ATO (statutory receivable). DISCLOSURES AND LEGAL COMPLIANCE NOTES TO THE FINANCIAL STATEMENTS 89
Interest rate exposure and maturity analysis of financial assets and financial liabilities
Weighted Interest Rate exposure Maturity date average Fixed Variable Non- Adjustment effective Carrying interest interest interest for Nominal Up to 1 1-3 3 months interest rate Amount rate rate bearing discounting Amount month months to 1 year 1-5 years % $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 2017 Financial Assets Cash and Cash Equivalents 51,491 – – 51,491 – 51,491 51,491 – – – Restricted Cash and cash 2.08 33,746 – 33,746 – – 33,746 – – – 33,746 equivalents Receivables 976 – – 976 – 976 976 – – – Amount Receivable for 28,858 – – 28,857 – 28,858 28,857 – – – Services 115,071 – 33,746 81,324 – 115,071 81,324 – – 33,746 Financial Liabilities Payables 2,147 – – 2,147 – 2,147 2,125 16 6 – Derivatives – Cash Flow 232 – – 232 1 233 33 – 134 66 2,379 – – 2,379 1 2,380 2,158 16 140 66
2016 Financial Assets Cash and Cash Equivalents 38,962 – – 38,962 – 38,962 38,962 – – – Restricted Cash and cash 2.27 32,784 – 32,784 – – 32,784 – – 32,784 – equivalents Receivables 1,271 – – 1,271 – 1,271 1,271 – – – Derivatives – Cash Flow 47 – – 47 – 47 47 – – – Amount Receivable for 26,939 – – 26,939 – 26,939 2,597 – – 24,342 Services 100,003 – 32,784 67,219 – 100,003 42,877 – 32,784 24,342 Financial Liabilities Payables 3 – – 3 – 3 3 – – – Derivatives – FVTPL – – – – – – – – – – 3 – – 3 – 3 3 – – –
(a) The amount of receivables excludes the GST recoverable from the ATO (statutory receivable). 90 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
Interest rate sensitivity analysis -10% change +10% change The following table represents a summary of the interest rate sensitivity of the Carrying Department’s financial assets and liabilities at the end of the reporting period on Amount Profit Equity Profit Equity the surplus for the period and equity for a 1% change in interest rates. It is assumed $’000 $’000 $’000 $’000 $’000 that the change in interest rates is held constant throughout the reporting period. 30-Jun-17 -100 basis points +100 basis points Financial Assets Carrying Cash and cash 725 59 59 (49) (49) Amount Profit Equity Surplus Equity equivalents $’000 $’000 $’000 $’000 $’000 Receivables 213 24 24 (19) (19) 2017 Other Financial – – – – – Financial Assets Assets – Derivatives Restricted 33,746 (337) (337) 337 337 938 83 83 (68) (68) Cash and cash Financial Liabilities equivalents Provisions 287 (32) (32) 26 26 33,746 (337) (337) 337 337 Other Financial 232 – 636 – (492) Liabilities – 2016 Derivatives Financial Assets 519 (32) 604 26 (466) Restricted 32,784 (328) (328) 328 328 Cash and cash 30-Jun-16 equivalents Financial Assets 32,784 (328) (328) 328 328 Cash and cash 759 59 59 (46) (46) equivalents Foreign exchange rate sensitivity analysis Receivables 122 (12) (12) 12 12 The following table represents a summary of the foreign exchange rate sensitivity of Other Financial 47 160 161 (125) (131) the Department’s financial assets and liabilities at the end of the reporting period on Assets – Derivatives the surplus for the period and equity for a 10% change in foreign exchange rate. It is assumed that the foreign exchange rates is averaged throughout the reporting period. 928 207 208 (159) (165) Financial Liabilities Provisions 200 (22) (22) 18 18 200 (22) (22) 18 18 DISCLOSURES AND LEGAL COMPLIANCE NOTES TO THE FINANCIAL STATEMENTS 91
Fair Values 40 Administered assets and liabilities All financial assets and liabilities recognised in the balance sheet, whether they are carried at cost or fair value, are recognised at amounts that represent a 2017 2016 reasonable approximation of fair value unless otherwise stated in the applicable $’000 $’000 notes. Foreign exchange contracts, are classified as Level 2 within the fair value Current Assets hierarchy. The valuation technique is a discounted cash flow method where future Cash and cash equivalents – WANDRRA(a) – – cash flows are estimated based on forward exchange rates (from observable – – forward exchange rates at the end of the reporting period) and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties. Current Liabilities Payables – WANDRRA(a) – 25,473
38 Events occurring after the balance sheet date (a) The Department no longer administers the Western Australian Natural Disaster Relief and Recovery Arrangements (WANDRRA). This function was transferred to the Office of Emergency Management There were no significant events affecting the operations of the Department of the during 2016-17. Premier and Cabinet after the balance date.
39 Contingent liabilities and contingent assets Contingent Liabilities There were no contingent liabilities at the report date. Contingent Assets There were no contingent assets at the report date. Contaminated Sites Under the Contaminated Sites Act 2003, the Department is required to report known and suspected contaminated sites to the Department of Environment and Regulation (DER). In accordance with the Act, DER classifies these sites on the basis of the risk to human health, the environment and environmental values. Where sites are classified as contaminated – remediation required or possibly contaminated – investigation required, the Department may have a liability in respect of investigation or remediation expenses. The Department has no known or suspected contaminated sites. 92 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
41 Disclosure of administered income and expenses by service
Administration of Executive Government Services Government Policy Management Total 2017 2016 2017 2016 2017 2016 COST OF SERVICES $’000 $’000 $’000 $’000 $’000 $’000 Income Administered appropriation(a) – – 16,137 26,437 16,137 26,437 Refund of prior year expenditure received – – – 156 – 156 from Main Roads WA (MRWA)(b) – – 16,137 26,593 16,137 26,593
Expenses Grants and subsidies – – 1,136 42,168 1,136 42,168 Total cost of services – – 1,136 42,168 1,136 42,168
(a) The Department administered the Western Australian Natural Disaster Relief and Recovery Arrangements (WANDRRA) for five months during the current year. This function was transferred to the Office of Emergency Management on 1 December 2016. (b) Income in 2015-16 includes a refund of prior year expenditure of $156,000 incorrectly paid to MRWA as a reimbursement of National Disaster and Relief and Recovery Arrangements (NDRRA) expenditure. This amount was paid by DPC in 2014-15 and a refund received was from MRWA in 2015-16. DISCLOSURES AND LEGAL COMPLIANCE NOTES TO THE FINANCIAL STATEMENTS 93
42 Explanatory Statement for Administered items
Variance Variance between between actual Original Budget Actual Actual estimate and results for 2017 Variance 2017 2017 2016 actual and 2016 INCOME FROM ADMINISTERED ITEMS Note $’000 $’000 $’000 $’000 $’000 Income Administered appropriation 1, A 15,837 16,137 26,437 300 (10,300) Refund of prior year expenditure received from – – 156 – (156) Main Roads WA (MRWA) Total Administered Income 15,837 16,137 26,593 300 (10,456)
Expenses Grants and subsidies 2, B 15,837 1,136 42,168 (14,701) (41,032) Total Administered Expenses 15,837 1,136 42,168 (14,701) (41,032)
NET INCOME (DEFICIT) FROM – 15,001 (15,575) 15,001 30,576 ADMINISTERED ITEMS
Major Estimates Vs Actuals Variance explanations Major Actual 2017 Vs Actual 2016 1 The increase in Administered appropriation of $0.3 million mainly relates to the A The decrease in Administered Appropriation of $10.3 million (39%) is mainly due transfer of the Anzac Day Trust Fund. to the transfer of the Western Australian Natural Disaster Relief function to the 2 The decrease in Administered Grants payment of $14.7 million (93%) is mainly office of Emergency Management in December 2016. due to payments in 2015-16 of $9.3 million for Natural disaster claims accrued B The decrease in Administered Grants payment of $41 million (97%) is mainly in 2015-16. due to payments of $9.3 million in 2016-17 for Natural disaster claims accrued in 2015-16 and the transfer of the Western Australian Natural Disaster Relief function to the Office of the Emergency Management in December 2016. 94 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
43 Other Assets (Joint Operations)
Name of operation: Output Interest (%) The Western Australian Marine Science Institution (WAMSI) 10 Principal Activity: To establish Western Australia as a world-leading centre in marine science, education, innovation-based regional marine enterprise generation and knowledge-based marine resource management.
The following amounts represent the Department’s assets employed in the above jointly controlled operations, which are included in the financial statements. For accounting purposes, the Department’s contribution is classified as a Joint Venture investment. The purpose of the contribution to WAMSI is to develop capabilities and expertise in a broad range of advanced technologies and research capabilities that are of potential strategic and community interest.
2017 2016 $’000 $’000 Current Assets Other financial assets(a) 84 118
During the reporting period the Department recognised a loss as follows: Loss on other financial assets 1,983 3,007
(a) Net investment in Joint Venture Opening Balance 118 124 Investment in Joint Venture 1,950 3,000 Loss on Joint Venture (1,983) (3,007) Net Investment 84 118 Karijini National Park. Karijini DISCLOSURES AND LEGAL COMPLIANCE 95
Department of the Premier and Cabinet Certification of Key Performance Indicators for the year ended 30 June 2017
I hereby certify that the performance indicators are based on proper records, are relevant and appropriate for assisting users to assess the Department of the Premier and Cabinet’s performance, and fairly represent the performance of the Department of the Premier and Cabinet for the financial year ended 30 June 2017.
Darren Foster Accountable Authority 11 September 2017
The Gap, Torndirrup National Park. 96 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017 Performance Snapshot for 2016–17
Table 1: Effectiveness Indicators Number Description 2016–17 Target and Result Reference Outcome 1 – Executive Government receives appropriate support
1.1 Targets for support services are met or exceeded Target: 96% p94 Actual: 98%
1.2 Service recipient’s confirmation that Target: 3.8 p94 services provided enable them to meet Actual: Exempt Executive Government’s obligations Outcome 2 – The Premier and Ministers receive high quality, rigorous and timely policy support
2.1 Service recipient’s satisfaction with Target: 4 p95 the policy advice provided in relation Actual: Exempt to Quality and Timeliness DISCLOSURES AND LEGAL COMPLIANCE PERFORMANCE SNAPSHOT FOR 2016–17 97
Table 2: Key Efficiency Indicators Number Description 2016–17 Target and Result ($’000) Reference Service 1 – Administration of Executive Government services
1.1 Average operating cost per Ministerial Target: 2,902 p96 Office (including Premier’s Office Actual: 2,908 and Leader of the Opposition)
1.2 Average cost of support provided per Target: 391 p96 Ministerial Office (including Premier’s Actual: 546 Office and Leader of the Opposition)
1.3 Average cost representing Western Target: 1,424 p96 Australia’s interests overseas (per region) Actual: 1,740
1.4 Average cost of entitlements per Target: 369 p97 Member of Parliament Actual: 415
1.5 Average cost of support provided Target: 17 p97 per Member of Parliament Actual: 20
Service 2 – Government Policy Management services
2.1 Average cost per Government Indigenous Target: 196 p97 Land Use Agreement (ILUA) managed Actual: 121
2.2 Average cost per Project ILUA managed Target: 299 p98 Actual: 225
2.3 Average Cost to Manage a Native Title Claim Target: 19 p98 Actual: 53
2.4 Total Cost to Deliver Policy Advice Target: 33,165 p98 Actual: 21,060
2.5 Number of Cabinet Submission Assessed Target: 700 p98 Actual: 466
2.6 Number of Cabinet Submission Briefing Target: 270 p98 Notes provided to the Premier Actual: 229 98 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017 Audited Key Performance Indicator Information
Performance Indicators Outcome 1 – Executive government receives appropriate support The Department delivered services to achieve the following Government Goal, which is: 2013–14 2014–15 2015–16 2016–17 2016–17 »»Results-based service delivery – Greater focus on achieving results in Actual Actual Actual Actual Target key service delivery areas for the benefit of all Western Australians. 1.1 Targets for 97% 99% 100% 98% 96% The Department’s Outcome Based Management (OBM) structure consists support services are of two agency-level outcomes, and two agency-level services, which are: met or exceeded 1.2 Service recipient’s 4.0 4.0 3.9 Exempt 3.8 »»Outcome 1: Executive Government receives appropriate support. confirmation that »»Outcome 2: The Premier and Ministers receive high services provided quality, rigorous and timely policy advice. enable them to »»Service 1: Administration of Executive Government Services. meet Executive »»Service 2: Government Policy Management. Government’s obligations Revision to the OBM Structure The Department’s OBM was revised for the year 2016-17, which resulted Outcome 1 – Key Effectiveness Indicators Explanatory Notes in the Department reporting four additional efficiency indicators. 1.1 Targets for support services are met or exceeded This indicator reports the percentage of essential services delivered within designated Explanations For Significant Variances timeframes. Data for this indicator is derived from transaction records maintained by the Results with significant variances of 10 percent or more compared Department on a range of essential services provided to the Premier and Ministers, all to the target or to prior year’s results have been explained. of which bear equal importance. The timeliness of service targets has been determined Key Effectiveness Indicators based on resources available to deliver each service, and client expectations. The key effectiveness indicators reported were chosen for their 1.2 Service recipient’s confirmation that services provided ability to enable assessment to be made of the extent to which enable them to meet Executive Government’s obligations the Department’s activities are achieving, or have made substantial This indicator reports the satisfaction levels of services delivered to the Premier’s progress towards achieving Outcome 1 and Outcome 2. Office, Ministerial Offices and the Leader of the Opposition’s Office. Service recipients are provided with the option to provide their responses as ratings via either an online survey or hard copy survey. Responses measure the extent to which the expectations of service delivered by the Department were met. The rating is a value between one and five, where a value of one indicates that services were ‘well below expectations’ and five that services were ‘well above expectations’; while a value of three indicates that services ‘met expectations’. Due to the change in Government, the Department was unable to collect survey data for the first nine months of 2016-17. As a result, the Department obtained an exemption from the Under Treasurer and is not required to report against this KPI for 2016-17. DISCLOSURES AND LEGAL COMPLIANCE AUDITED KEY PERFORMANCE INDICATOR INFORMATION 99
Outcome 2 – The Premier and Ministers receive high The following expenditures have been excluded in calculating efficiency quality, rigorous and timely policy advice indicators as they either do not directly relate to the services provided by the Department or are not considered to be a cost of service delivery. 2013–14 2014–15 2015–16 2016–17 2016–17 Actual Actual Actual Actual Target 2013–14 2014–15 2015–16 2016–17 2.1 Service recipient’s 4.0 4.0 3.7 Exempt 4 Actual Actual Actual Actual satisfaction with the Excluded Expenditures $’000 $’000 $’000 $’000 policy advice provided Services provided free of charge 1,529 1,212 743 955 in relation to Quality and Timeliness Community service obligations 3,938 8,008 15,559 28,124 and non-core operations (1) Grants and donations 54,706 31,957 29,308 36,890 Outcome 2 – Key Effectiveness Indicators Explanatory Notes Total 60,173 41,177 45,610 65,969 2.1 Service recipient’s confirmation that high quality Notes: (1) Costs for 2016-17 include the Constitutional Centre, State Law Publisher and and timely policy advice is provided. Yarloop Clean-up Project ($24.4 million). This indicator reports the satisfaction levels of services delivered to the Premier’s Office and Ministerial Offices. Service recipients are provided with Service 1: Administration of Executive Government Services the option to provide their responses as ratings via either an online survey or The Department’s principal client for these services is the Premier hard copy survey. Responses measure the extent to which the expectations as the Head of Government, Cabinet Ministers and Members of of service delivery by the Department were met. The rating is a value Parliament. Services provided include, but are not limited to: between one and five, where a value of one indicates that services were ‘well »»administrative support to the Premier; below expectations’ and five that services were ‘well above expectations’; »»administrative policy advice and support to ministerial while a value of three indicates that services ‘met expectations’. offices and the Leader of the Opposition; Due to the change in Government, the Department was unable to »»support for the functions of Cabinet and Parliament; and collect survey data for the first nine months of 2016-17. As a result, »»communication of Government policies and activities; the Department obtained an exemption from the Under Treasurer »»support for the Executive Council; and is not required to report against this KPI for 2016-17. »»administration of entitlements for Members and former Members of Parliament; »»management of the State occasions and official visits program; Agency Services and Key Efficiency Indicators »»a secure, confidential and time-critical printing and publishing The following two services directly support the delivery of agency- service for Parliament and Government; and level outcomes and the Department’s strategic goals: »»management of exhibitions and programs at the Constitutional Centre. »»Service 1: Administration of Executive Government Services »»Service 2: Government Policy Management The key efficiency indicators provide information on the cost of inputs required to deliver outcomes, and include all costs associated with the specific service. To report the total cost of service, corporate and executive support expenses are distributed across services on an FTE basis and incorporated in reported key efficiency indicators. 100 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
The major activities undertaken in Service 1 are reflected Service 1: Key Efficiency Indicators Explanatory Notes in the following key efficiency indicators. 1.1 Average operating cost per Ministerial Office (including the Premier’s Office and Leader of the Opposition) 2013–14 2014–15 2015–16 2016–17 2016–17 This indicator reports the average operational expense for each office (including Actual Actual Actual Actual Target the Premier’s Office and Leader of the Opposition) plus a proportion of the cost of $’000 $’000 $’000 $’000 $’000 executive support and corporate services allocated on an FTE basis. This efficiency 1.1 Average operating 2,626 2,657 2,813 2908 2,902 indicator includes all costs associated with the day-to-day operation of the cost per Ministerial ministerial offices including the Premier’s Office and the Leader of the Opposition. Office (including 1.2 Average cost of support provided per Ministerial Office Premier’s Office (including the Premier’s Office and Leader of the Opposition) and Leader of the This indicator reports the average expense for all Executive Government support functions Opposition) per Ministerial Office (including the Premier’s Office and Leader of the Opposition) plus 1.2 Average cost of 1,692 1,434 1,382 546 391 a proportion of the cost of executive support and corporate services allocated on an FTE support provided basis. Support to Ministerial Offices includes executive transport and services related to per Ministerial Office Ministerial Office coordination, correspondence, and the community comment line. (including Premier’s The increase (compared to Target) represents staff severances paid to Term of Office and Leader Government Staff due to the change of Government. The variance also reflects a of the Opposition) revised KPI cost allocation framework and methodology used in 2016-17 due to the 1.3 Average cost 1,491 1,663 1,604 1,740 1,424 introduction of four new KPIs. The revised cost allocation framework has resulted in representing Western a decrease in costs allocated to the new KPI i.e. ‘Total Cost to Deliver Policy Advice’ Australia’s interests (compared to when the budget ‘target’ was set during the 2016-17 Budget Process) overseas (per region) and has shifted costs to other KPIs. As a result, the average cost of most KPIs within 1.4 Average cost of 391 401 409 415 369 Service 1 have increased compared to last year, with the exception of this KPI. entitlements per The decrease for this KPI (compared to 2015-16 Actual) mainly relates to the change in the Member of Parliament cost allocation framework used for 2016-17, which resulted in costs previously allocated to 1.5 Average cost of 16 18 20 20 17 this KPI now more accurately allocated to the new KPI i.e. ‘Total Cost to Deliver Policy Advice’. support provided per Member of 1.3 Average cost of representing Western Australia’s Parliament interests overseas (per region) Overseas Offices are maintained in Europe (London), Dubai (covering the Middle East and Africa) and North Asia (Tokyo and Kobe) to attract foreign investment to Western Australia and promote Western Australian products and services. The key efficiency indicator reports the average operational expense for all regions, plus a proportion of the cost of executive support and corporate services allocated on an FTE basis, which is divided by the total number of regions. The increase (compared to Target) in the average cost for the three overseas offices reflects the revised cost allocation framework and methodology for allocating costs to the efficiency KPIs (refer to the explanation provided for KPI 1.2). DISCLOSURES AND LEGAL COMPLIANCE AUDITED KEY PERFORMANCE INDICATOR INFORMATION 101
1.4 Average cost of entitlements per Member of Parliament The major activities undertaken in Service 2 are reflected in the following KPIs. This indicator reports the average cost of entitlements per Member of Parliament. Service 2: Government Policy Management Entitlements are determined by the Salaries and Allowances Tribunal and the State Government, and include Electorate Office staffing and operational 2013–14 2014–15 2015–16 2016–17 2016–17 expenses, a fully-serviced motor vehicle, imprest and electorate travel and Actual Actual Actual Actual Target Former Members’ entitlements. The indicator is the average cost per Member, $’000 $’000 $’000 $’000 $’000 including executive and corporate support overheads allocated on an FTE basis. 2.1 Average cost 427 502 402 121 196 The increase (compared to Target) in the average cost of entitlements per Government (which includes electorate office accommodation and staff) for each Indigenous Land member of Parliament mainly reflects the revised cost allocation framework Use Agreement and methodology used for allocating costs to the efficiency KPIs (refer (ILUA) managed to the explanation provided for KPI 1.2) and staff severances paid to 2.2 Average cost 1,195 908 779 225 299 Term of Government staff due to the change in Government. per Project ILUA managed 1.5 Average cost of support provided per Member of Parliament This indicator reports the average expense for administrative support to Electorate 2.3 Average Cost – – 68 53 19 Offices per Member, including a proportion of the cost of executive support and to Manage a Native corporate services allocated on an FTE basis. Average cost of support provided Title Claim* per Member of Parliament includes administration of entitlements, management 2.4 Total Cost to – – 22,543 21,060 33,165 of accommodation, and the salaries of the Government Whip Assistant and Deliver Policy Advice* Electorate Executive Officers, divided by the number of Members of Parliament. 2015–16 2016–17 2016–17 The increase (compared to Target) in the average cost of head office Actual Actual Target support provided to each Member of Parliament mainly reflects the # # # revised cost allocation framework and methodology for allocating costs to 2.5 Number of Cabinet Submission Assessed* 631 466 700 all KPIs (refer to the explanation provided for KPI 1.2). 2.6 Number of Cabinet Submission 275 229 270 Service 2: Government Policy Management Briefing Notes provided to the Premier* The Premier as the Head of Government and Minister for Science is the principal client for this service. Services provided include, but are not limited to: * These are the new efficiency indicators for the year 2016-17. The prior year results have been calculated for comparative purposes. »»strategic policy advice and coordination to the Premier and Cabinet, Service 2: Key Efficiency Indicators Explanatory Notes leadership and coordination of cross-agency solutions to complex issues; 2.1 Average cost per Government Indigenous Land Use Agreement »»management of the State occasions and official visits program; (ILUA) managed »»management and coordination of Western Australian Government input into This efficiency indicator reports the cost of resources committed to the intergovernmental matters. This includes the Council of Australian Governments, Department’s efforts in negotiating with native title claim groups towards meetings of senior officials, Council for the Australian Federation, parliamentary an outcome, where a registered Government ILUA is anticipated. inquiries, international treaty matters and free-trade agreements; and »»strategic, cross-portfolio advice on land, State and Commonwealth approvals and Indigenous issues. 102 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
The decrease (compared to Target) in the average cost per Government ILUA mainly 2.4 Total Cost to Deliver Policy Advice reflects savings in legal costs. Furthermore some shared Native Title administrative This efficiency indicator reports on the total cost of resources committed to costs previously allocated to this KPI have now been allocated to the new KPI Government Policy Management (Service 2), after deducting costs for the i.e. ‘Average Cost to Manage a Native Title Claim’. This re-alignment of costs management of Native Title Claims, Indigenous Land Use Agreements (ILUAs) occurred after the budget ‘Target’ was set during the 2016-17 Budget Process. grants, donations and non-core business costs included within Service 2. The decrease from 2015-16 reflects the savings in legal fees and the revised cost The decrease (compared to Target) in the ‘Cost to Deliver Policy Advice’ reflects the allocation framework that has resulted in costs from this KPI being re-allocated revised allocation framework and methodology used to allocate costs to the efficiency to the new Native Title KPI i.e. ‘Average Cost to Manage a Native Title Claim’. KPIs (refer to the explanation provided for KPI 1.2). In addition the decrease reflects $5 million for Innovation Strategy funding now transferred to the Department of Finance. 2.2 Average cost per Project ILUA managed The Project ILUA process represents specific agreements negotiated with Native The ‘resources’ for this KPI mainly represent the staff (FTE) responsible for delivering Title parties for either State significant projects or over smaller project areas. policy advice. The average FTE required during 2016-17 was 97 (2015-16: 93) and the average cost per FTE for the cost to deliver policy advice was approximately This efficiency indicator reports on the cost of resources committed to the: $217, 000 (2015-16: $242,000). »»negotiation of new Project ILUAs; and 2.5 Number of Cabinet Submissions Assessed »»management of existing Project ILUAs. The Department’s purpose is to deliver high quality advice, services and support to A Project ILUA is: enable the Premier and Government to serve the Western Australian community a. a Government ILUA that has been registered by the National Native well. One of the Department’s key policy goals is to deliver a high level of effective Title Tribunal, including as part of a claims settlement process; support and policy advice to meet the needs of executive government. This b. an ILUA related to a strategic project being negotiated by indicator focusses on the number of Cabinet submissions assessed by the Cabinet the State that involves a future act process; and/or and Policy Division of the Department, prior to being considered by Cabinet. The c. an existing ILUA related to a strategic project that involves a future act process. Cabinet and Policy Division, and other areas as required, makes an assessment of Cabinet submissions received to determine whether Departmental advice is needed. The decrease (compared to Target) in the average cost per Project ILUA (registered) mainly reflects savings in legal costs. Furthermore, some shared Native Title The decrease (compared to Target and last year) in the Number of Cabinet administrative costs previously allocated to this KPI have now been allocated to the Submissions Assessed reflects the low number of Cabinet meetings during new KPI i.e. ‘Average Cost to Manage a Native Title Claim’. This re-alignment of costs the third quarter of 2016-17, due to the March 2017 State Election. occurred after the budget ‘Target’ was set during the 2016-17 Budget Process. 2.6 Number of Cabinet Submission Briefing Notes provided to the Premier The decrease from 2015-16 reflects the savings in legal fees and the revised cost This indicator focusses on the number of Cabinet submission briefing notes that allocation framework that has resulted in costs from this KPI being re-allocated are provided to the Premier for each Cabinet meeting. The Department provides to the new Native Title KPI i.e. ‘Average Cost to Manage a Native Title Claim’. strategic policy advice to the Premier on Cabinet Submissions of a strategic and contentious nature. This policy advice is in the form of a Cabinet submission briefing 2.3 Average Cost to Manage a Native Title Claim note, which is generated by policy staff and provided in the Premier’s Cabinet file. The purpose of this indicator is to identify the average cost to manage each Native Title Claim through various research, negotiation and litigation activities. The decrease (compared to Target and last year) in the Number of Cabinet Submissions Briefing Notes provided to the Premier reflects the low number of Cabinet meetings The increase (compared to Target) in the ‘Average Cost to Manage a Native Title during the third quarter of 2016-17, due to the 2017 March State Election. Claim’ for this new KPI mainly reflects the revised methodology for allocating Native Title administration costs, (refer to the explanation provided for KPI 2.1 and 2.2). The decrease from 2015-16 mainly reflects overall savings in Native Title legal fees. DISCLOSURES AND LEGAL COMPLIANCE OTHER FINANCIAL DISCLOSURES 103 Other Financial Disclosures
Pricing Policies and the Office of the Director General. The external contractor delivered three Fees and charges for publications, Government Gazette advertising and internal audit reports on various aspects of the Department’s business. subscription services are generally increased in line with the consumer price index External Audit as advised by the Department of Treasury. Rates are structured to recover all costs During 2016–17, the Department worked on addressing findings arising from including overheads and labour, and are part of the budget process with increases a range of external audits conducted by the Office of the Auditor General, being approved by the responsible Minister (Premier) and Department of Treasury. with a focus on improving processes and practices across the organisation. Capital Works Risk Management The Department incurred purchase capital items of $0.642 million during the financial A schedule was developed for the revision of all Risk Registers, in line with the Departmental year, predominantly for computer hardware/software and other office equipment. policy that these documents be reviewed annually by the nominated Risk Coordinators. Employment and Industrial Relations Contact with a Lobbyist The Department’s annual average paid full-time equivalent (FTE) employed in The Department ensured compliance with the Public Sector Commission’s Contact 2016–17 was 463 FTEs, compared to 2015-16 average paid FTE of 470 FTEs.[1] with Lobbyist Code. As at 30 June 2017, the Department’s workforce[2] employed in Personal Use of Credit Cards core business areas comprised of 85% permanent employees, 12% fixed term employees and 3% casual employees. Personal expenditure under Treasurer’s In the Parliamentary Electorate Offices, the annual average paid FTE in 2016–17 instruction 321 – Credit Cards – Authorised Use: 2015-16 2016–17 employed to support the State Members of Parliament was 188 FTEs. (a) the number of instances the Western 10 7 Australian Government Purchasing Card [1] Represents updated 2015-16 annual report figure. has been used for a personal purpose; [2] Source HRMOIR (b) the aggregate amount of personal use $8,253.42 $2,283.44 Ministerial Directives expenditure for the reporting period; No Ministerial directions were received during the financial year. (c) the aggregate amount of personal use $4,016.07 $ 59.19 Governance Disclosures expenditure settled within 5 days of notification; Conflicts of Interest (d) the aggregate amount of personal $4,237.35 $2,224.25 The Department placed a strong emphasis on the need for staff to comply with use expenditure settled after the the Conflicts of Interest Policy, a commitment that has assisted in maintaining period required by paragraph (c); the Department’s impartiality and transparency of its business activities. (e) the aggregate amount of personal – – The Department educated and guided staff in the declaration and use expenditure outstanding at the management of all actual, perceived and potential conflicts of interest. end of the reporting period; and (f) the number of referrals for disciplinary – – Internal Audit action instigated by the notifiable The Department engaged an external contractor to undertake internal audit authority during the reporting period. services for the year, activities which were overseen by the Internal Audit Committee 104 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017 Board and Committee Remuneration
Constitutional Centre Advisory Board Remuneration
Gross/Actual Position Name Type of Remuneration Period of Membership Remuneration ($) Chair Hon Cheryl Edwardes Sitting fee 3 years 612.00 Resigned 1.6.17 Deputy Chair Dr Robert Isaacs Sitting fee 1 year 406.00 Commenced 1.11.16 Member Prof Harry Phillips Sitting fee 3 years 812.00 Member Prof David Black Sitting fee 3 years 812.00 Member Dr Janice Dudley Sitting fee 3 years 783.20 Member Ms Diana Warnock Sitting fee 3 years 712.00 Member Hon. John Cowdell Sitting fee 3 years Resigned 31.10.16 Member Dr Sarah Murray Sitting fee 3 years 812.00 Member Hon Ray Halligan Sitting fee 3 years 609.00 Member Hon Christine Wheeler N/A 3 years N/A Member Mr Grant Donaldson SC N/A 3 years N/A TOTAL 5,558.20 DISCLOSURES AND LEGAL COMPLIANCE BOARD AND COMMITTEE REMUNERATION 105
Partnership Forum
Position Name Type of Remuneration Period of Membership Gross Remuneration ($) Actual Remuneration ($) Chair Robyn Kruk MA** Annual 2 years 23,733.00 23,314.75 Member Ralph Addis N/A 2 years - - Member Sue Ash AO** N/A 2 years - - Member David Axworthy N/A 2 years - - Member Pip Brennan N/A 2 years - - Member Rebecca Brown N/A 2 years - - Member Ian Carter AM N/A 2 years - - Member Irina Cattalini** N/A 2 years - - Member Ron Chalmers N/A 2 years - - Member Peter Conran AM** N/A 2 years - - Member David Smith** N/A 2 years - - Member Taryn Harvey N/A 2 years - - Member Paul Fleay N/A 2 years - - Member Steve Joske CSC N/A 2 years - - Member Debbie Karasinski N/A 2 years - - Member Timothy Marney N/A 2 years - - Member Jennifer Mathews N/A 2 years - - Member Joan Mckenna Kerr N/A 2 years - - Member Daniel Morrison N/A 2 years - - Member Susan Murphy N/A 2 years - - Member Ashley Reid N/A 2 years - - Member Grahame Searle N/A 2 years - - Member Gordon Trewern N/A 2 years - - Member Emma White N/A 2 years - - Member Paul Whyte N/A 2 years - - Member Daniel Morrison N/A 2 years - - *New Member at April 2017 **Departed Member at April 2017 TOTAL 23,733.00 23,314.75 106 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017 05 Other Legal Requirements The Bell Tower, Perth. The Bell Tower, OTHER LEGAL REQUIREMENTS 107
Statement of Compliance with State Records Commission State Records Act 2000 Requirement Department Compliance Action Section 19 and State Records Whether the efficiency »»The Department has an approved and current RKP. Record Standards, Standard 2, Principle 6 and effectiveness Keeping Programs have been prepared and signed by all Section 19 of the State Records Act of the organisation’s Ministers and the Parliamentary Secretary of the Cabinet. A 2000 requires all agencies to have record keeping systems Record Keeping Program has been prepared for the Special an approved Record Keeping Plan have been evaluated or Inquiry into Government Programs and Projects. A new (RKP) that must be complied with by alternatively when such Retention and Disposal Authority for Royal Commissions the organisation and its officers. evaluation is proposed. and revised Retention and Disposal Authority for Special Inquiries are awaiting State Records Commission approval. The Department has an approved The nature and extent of All staff receive enrolment in an on-line self-paced records RKP valid until 2020. The plan covers »» the record keeping training awareness training (RAT) system endorsed by the State records of the Department, Office program conducted by Records Office. This training provides staff with a sound of the Premier, the Cabinet, the or for the organisation. understanding of record keeping roles and responsibilities. Executive Council and all Ministers. »»42 publications have been created for training purposes Officers of the Department, Office of the which include fact sheets, advice, training manuals & Premier, the Cabinet, the Executive Council videos. An electronic magazine regarding record keeping and all Ministers receive training to support matters is emailed to staff on a monthly basis. compliance with the State Records Act 2000. »»A compliant records system is used to capture In accordance with State Records electronic records; this year training was provided to Commission Standard 2, Principle 6 the 157 clients supporting approximately 742 users. following compliance information is provided: Whether the efficiency »»The RAT is mandatory for all staff, with 94% of and effectiveness of the Departmental and 71% of Ministerial Office employees record keeping training having completed the course. The RAT product has been program has been reviewed reviewed and a new course will be released late in 2017. or alternatively when this »»The RAT includes a staff feedback process, course is planned to be done. participants have indicated a 93% approval of the content and 91% have indicated an improved understanding of record keeping roles and responsibilities after completing the RAT. Assurance that the »»Section 6 of the Department’s online induction program organisation’s induction covers archives and record keeping responsibilities. program addresses »»The Department also requires all staff to attend employee roles and Accountable and Ethical Decision Making training which responsibilities in regard is based around the Department’s Code of Conduct, to their compliance Principle 6 of this training covers record keeping. with the organisation’s »»All support materials are available to staff via the intranet. Record Keeping Plan. 108 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
Statement of Expenditure – Electoral Act 1907 Department of the Premier and Cabinet advertising, Section 175ZE by class of expenditure, 2016–17 In compliance with section 175ZE of the Electoral Act 1907, the Department of Recipient/Organisation Amount ($) the Premier and Cabinet is required to report on expenditure incurred during the Advertising Agencies financial year in relation to advertising agencies, market research organisations, Carat Australia 191,401 polling organisations, direct mail organisations and media advertising organisations. Adcorp Australia 46,518 Summary of Department of the Premier and Cabinet advertising in 2016–17 Total 237,919 Summary of Advertising Amount ($) Market Research Organisations Advertising Agencies 237,919 Nil – Market Research Organisations – Total – Polling Organisations – Direct Mail Organisations – Polling Organisations Media Advertising Agencies 69,917 Nil – Total advertising expenditure 307,836 Total –
Direct Mail Organisations Nil – Total –
Media Advertising Agencies Clarity Corporate Communications 31,500 RARE Creative Thinking 22,010 Lux Events 5,422 Strut & Fret Production House 5,000 Plastafab 4,485 WebEdge Marketing 1,500 Total 69,917 OTHER LEGAL REQUIREMENTS 109
Statement of Compliance with Disability Statement of Compliance with the Public equity, interest and transparency principles Access and Inclusion Plan Outcomes Sector Standards and Ethical codes are maintained. Each recruitment, (Disability Services Act 1993 – section Standards and Ethical Codes (Public Sector selection and appointment process 29 and Schedule 3 of the Disability Management Act 1994, section 31[1]) is reviewed and considered in light of the four principles and open merit Services Regulations 2004) The Department is committed to promoting selection processes were undertaken. The Department developed a new Disability integrity in official conduct in the Public Access and Inclusion Plan (DAIP) in 2016, Service and achieving compliance with Compliance Issues: There were no setting out a number of initiatives scheduled the Public Sector Standards, the Western breaches in the Employment Standard to be implemented over a period of time Australian Code of Ethics and the in the 2016–17 financial year. until June 2021. The Department seeks Department’s Code of Conduct. These Significant Actions Undertaken to the views of existing employees with guidelines are endorsed by the Corporate Promote Compliance with the Western disability to assist in development of the Executive and senior management and Australian Public Sector Code of Ethics planned initiatives taking into consideration are practised within the Department. and the Department’s Code of Conduct priority and appropriateness for use. This To support the application of the Public The Department’s Code of Conduct (‘the Plan is reviewed annually and outcomes Sector Standards, the Western Australian Code’) sets out the standards of conduct are monitored periodically to ensure the Code of Ethics and the Commissioner’s and integrity that are to be followed by initiatives are still relevant and the level of Instructions, the Department has a number the Department and all its employees. accessibility continues to be suitable. of formal policies, procedures and guidelines The Code is also developed in line with In 2016, the Department made further which are reviewed on a regular basis. the minimum standards of conduct progress towards ensuring the services and integrity set out by the Western The following outlines the significant and events of the Department are Australian Public Sector Code of Ethics. action taken to monitor and ensure available to members of the public with compliance in each of the following areas: The Department provides all new staff disability by ensuring all employees with a copy of the Code of Conduct along Significant Actions Undertaken make use of the Access and Inclusion with training and guidelines on ethical to Promote Compliance with Resource Kit when planning events. and accountable decision making to the Public Sector Standards in ensure staff have the means to deal with Human Resource Management and situations relating to conduct and integrity. Commissioner’s Instructions The Department’s induction also covers To ensure compliance with the these topics to support understanding. Commissioner’s Instructions No 1 on Employment Standard and No 2 on Filling a Public Sector Vacancy, the Department has in place a process to ensure merit, 110 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017 06 Government Policy Requirements
Elizabeth Quay, Perth. GOVERNMENT POLICY REQUIREMENTS 111
Substantive Equality Actual Results Results against Target (Implementation of the Policy Framework for Substantive Equality) Comment The Department’s commitment to the Policy Framework for Substantive Equality on Results is reflected in the Department’s Equal Opportunity Policy which is available to all Measure 2015-16 2016–17 Target Achieved staff via the Department’s Intranet and as part of the Department’s induction. Number of fatalities 0 0 0 The Department ensures that the principles of the policy framework Lost time injury/ 1% 1% 0 or 10% are upheld and management decisions are made taking into disease incidence rate reduction consideration equity, parity and fairness to the community. Lost time injury/ 0% 75% 0 or 10% 3 severe LTI Occupational Safety, Health and Injury Management disease severity rate reduction claims out The Department, through the Corporate Executive, is committed to providing of 4 total a healthy, safe and accident free workplace for all its employees, contractors LTI claims and visitors by complying with the Occupational Safety and Health Act Percentage of 1984 and the Workers’ Compensation and Injury Management Act 1981. injured workers returned to work: The Department’s Occupational Safety and Health (OSH) Committee is the fundamental mechanism for consultation on OSH matters between »»vi. within 13 weeks 100% 75% Actual result employees and the Corporate Executive. The Committee is comprised of to be stated employee and management representatives and meets every quarter to »»vii. within 26 weeks 100% 100% discuss and resolve safety and health issues, and review objectives, plans Greater than or and procedures, in line with the Department’s OSH Management Plan. equal to 80% The Department is committed to continuous review and Percentage of 84% 72% Greater than High improvement of workplace safety and health. managers trained or equal turnover of in occupational to 80% managerial The Department undertook an internal assessment of its OSH safety, health and staff in Management Systems in 2011 and continues to achieve the agreed outcomes. injury management March 2017 The Department has a documented Injury Management System in place in responsibilities accordance with the Workers’ Compensation and Injury Management Act 1981 and this system assists the Department in providing injury management support to those who have sustained a work related injury or illness. This process involves identifying return to work goals and injury management interventions which are fundamental to a successful return to work program. 112 DEPARTMENT OF THE PREMIER AND CABINET ANNUAL REPORT 2016–2017
Government Building Training Policy This reporting requirement is for monitoring the implementation of the Government Building Training (GBT) Policy. The GBT Policy aims to increase the number of apprentices and trainees in the building and construction industry by requiring contractors awarded State Government building, construction and maintenance contracts to commit to meeting a target training rate through employing construction apprentices and trainees. At the 30 June 2017 no contract subject to the Government Building Training Policy had been awarded. The Bungle Bungle Range, Purnululu National Park. The Bungle Range, SECTION TITLE SECTION HEADING 113 Geikie Gorge National Park, the Kimberley. Geikie Gorge National Park,
Annual Report 2016–2017